It will be a long and laborious process for international card networks to set up their business in China card market, but MasterCard sees the online world as a low-hanging fruit that can’t be missed.
The network last week signed a memorandum of understanding with CITIC Bank for strategic cooperation in the digital payment market both within and outside China.
From Finextra:
The two parties aim to jointly develop and promote innovative products and services including Quick Response” (QR) code services, and collaborate to provide a safe and efficient payment experience for domestic and overseas cardholders and merchants.
MasterCard and Visa currently have relationships with Chinese banks, including CITIC Bank, to issue international cards co-branded with China UnionPay. The cards work as a MasterCard/Visa card outside of China, but are treated as a CUP card in the domestic market. Single-branded MasterCard and Visa cards have yet to get the approval from the regulators for issuance in China. But progress is expected in that area later this year.
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