China opens up its bank card payment clearing market

On 1 June 2015, the Decision to Implement Market Access Administration for Bank Card Clearing Institutions (the “Decision”) issued by the State Council came into effect. The Decision enables both Chinese and foreign-invested institutions to apply for bank card payment clearing licences, putting an end to China Union Pay’s decade-long position as the sole clearing agency for RMB-denominated bank card payments.

In our alert, we illustrate a number of key areas of concern for new investors seeking to enter China’s electronic payments market.

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