According to foreign media Apple insider,MasterCard has been approved by the people's Bank of China to start its bankcard clearing business in China,This opens up the potential for Apple to expand its own brand, Apple Card, in China. Mastercard's application was approved, Bloomberg reported Tuesday, citing an official notice.
For a long time, China has maintained China UnionPay as its national monopoly to handle all bank card clearing and other financial services. However, in 2015, China launched a plan to allow foreign companies to apply for licenses in China and conduct business locally.
Mastercard, visa and american express have all applied for a bank card clearing service in china, which will enable them to start issuing cards and processing deals with merchants in the world's largest mobile payment market, with an estimated annual turnover of more than rmb129 trillion.
Issuers complain that as domestic companies thrive, barriers to entry hinder their ability to enter the market. According to the report, China currently has 8.2 billion bank cards in circulation, 90% of which are debit cards. It is also increasingly popular for bank associated applications that use barcodes or NFC to pay.
Apple has enabled Apple Pay for users in mainland China, but only by running iOS 11.2 or later IPhoneandIPadThe Safari on the Web operates. Standard Apple Pay works in Hong Kong, China, Taiwan and Macau, China, and each region operates independently. When China allows Apple to release Apple Pay's full potential in mainland China remains unknown.
Apple has been approved to use Apple Pay Express Transit cards issued by the system in Beijing and Shanghai. After setting up the UnionPay account, Apple Pay can also be used in public transport systems in Guangzhou and Hangzhou.
If Apple Pay can be fully approved in China, Mastercard's clearance should also allow Apple to launch Apple Card and its novel Wallet integration service in China.
Apple card and the apple pay cash service, which supports free payments between individuals, are currently only available to users who establish accounts in the United States. However, Americans with apple cards can use it anywhere that Apple pay NFC contactless transactions can use it, or through their actual MasterCard anywhere that they accept a major credit card.