China to open market to Visa, Mastercard - report

Business 1/14/2019, 12:44 PM
China to open market to Visa, Mastercard - report

The People's Bank of China is planning to open the country's market to large United States financial corporations, Visa and Mastercard, to process yuan payments, the Financial Times reported on Monday, citing sources familiar with the matter. The bank has not yet officially approved the corporations' applications. However, as they were submitted over a year ago, the bank will soon start a 90 days period where a final decision will have to be made, the report said.

If the applications receive formal approval, Visa and Mastercard would compete with China's Unionpay, which currently dominated the Chinese market. Furthermore, Unionpay's largest shareholder is the People's Bank of China. Thanks to its dominant position in China, Unionpay controls approximately 36% of global credit card payments.

Mastercard Inc. shares traded 0.5% in the negative territory during the premarket trading. Meanwhile, Visa Inc. stock fell 0.92%.

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