Mastercard has launched its domestic payments processing services in China.

The company will be able to process payments made via Mastercard cards issued by banks in China through its joint venture Mastercard NetsUnion Information Technology (Mastercard NetsUnion.)

The payment services provider will also be able to accept Mastercard-branded cards issued in the country for international purchases.

In February 2020, the People’s Bank of China (PBOC) granted principal approval for Mastercard NetsUnion to lay the foundations for a domestic bankcard clearing institution in China.

Since then, Mastercard said it has established rules and infrastructure in line with local regulatory requirements and obtained the required certificates for a local switch business.

In November 2023, Mastercard NetsUnion received formal approval from the PBOC and the National Administration of Financial Regulation (NAFR) to commence domestic bankcard clearing activity.

“As our digital doors officially open for business, Mastercard and Mastercard NetsUnion are committed to working with all partners in China to build a secure, trusted and resilient digital ecosystem that encourages innovation,” said Ling Hai, chairman of the board of Mastercard NetsUnion and president of Asia Pacific, Europe, Middle East & Africa for Mastercard. “To offer more choice and deliver greater value for Chinese consumers and businesses of all sizes, we will expand the availability of Mastercard-branded products, facilitate the addition of millions of new acceptance locations across the country, and deliver seamless and safe payments experiences every day.”

Prior to the announcement, Mastercard provided payment services for international visitors to China by linking internationally-issued Mastercard cards to Chinese digital wallets. Users could pay through QR codes at millions of locations across the country.

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