Payments using Mastercard cards issued by Chinese banks were processed this week via the Mastercard NetsUnion JV. Furthermore, purchases made both domestically and abroad will now be accepted with cards bearing the Mastercard name.

"With our local partner NUCC, our goal is to simplify the payments experience for China's Mastercard cardholders both at home and overseas," says Michael Miebach, CEO of Mastercard.

Over the years, there has been significant resistance to foreign card schemes entering China's multitrillion dollar payments market. The nation loosened regulations in June 2015 regarding foreign companies gaining licenses through the establishment of branches or the purchase of local businesses.

At that time, Mastercard and NetsUnion Clearing Corporation (NUCC) collaborated to form a majority-owned joint venture.

The People's Bank of China primarily authorized Mastercard NUCC's proposal in February 2020 so that official steps for establishing a domestic bankcard clearing institution could be taken.

Since then, the JV has secured the necessary certificates for a local switch business and developed standards, regulations, structures, and infrastructure in accordance with local regulatory requirements.

The project then obtained official approval from the National Administration of Financial Regulation and the PBOC last year to start domestic bankcard clearing operations, paving the path for this week's action.

According to Ling Hai, chairman of Mastercard NetsUnion, "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 in order to offer more choice and deliver greater value for Chinese consumers and businesses of all sizes."