PBOC says no tough rules for foreign bank card firms
Central bank vice-governor says opening up to proceed actively and cautiously
Beijing will not impose tough licensing restrictions on overseas bank card providers seeking to enter the mainland’s US$7 trillion card payment market, a senior central bank official said on Tuesday.
Industry sources said last month they were concerned the central government would limit the number of licences issued to foreign card providers and force them to operate through joint ventures with local partners.
However, People's Bank of China vice-governor Fan Yifei told a conference there were no plans to bring in such requirements.
“We will actively and cautiously open up China's card payment market according to laws and regulations, and encourage fair competition,” Fan said.
Foreign card companies, including Visa and MasterCard, have been lobbying for more than a decade for direct access to the mainland’s fast-growing cards market, which is projected to become the world's biggest by 2020.
The State Council announced in April that the mainland would allow foreign firms to apply to the central bank for licences to operate bank card clearing businesses from June 1, a move aimed at addressing a 2012 ruling by the World Trade Organisation that found Beijing was discriminating against US credit card firms.