China is set to open up its market for clearing domestic bank card transactions paving the way for foreign players such as Visa and MasterCard to venture into the region.

Rules published by the State Council allow foreign firms to set up their own clearing companies in China and apply for licenses to the central bank starting from 1 June 2015.

Foreign firms will require to pay registered capital of CNY1bn ($161m), covering various aspects, during the application process.

The measure will end the monopoly held by China UnionPay, the country’s domestic cards and payments firm, allowing competition with the entry of Visa and MasterCard, the world’s two largest credit and debit card suppliers.

People’s Bank of China in a statement said: "Opening up the market for bank card clearing will help improve the country’s card-clearing services through market competition."

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.