The Chinese government is not formally considering Visa and Mastercard’s year-old application to process payments inside China, another signal of China’s almost constantly changing regulatory posture toward the American card brands.
The People’s Bank of China has not acknowledged Visa and Mastercard’s 2018 application, reports the Financial Times, which cited anonymous sources. The central bank's acknowledgement of the application would force it to make a decision within 90 days.
A translation of Chinese media site Wall Street CN contends Mastercard withdrew its application and Visa’s application lacked materials. Wall StreetCN also disputes media reports that China was requiring Visa and Mastercard to set up a joint venture with local parties to operate inside China.
Traffic passes the China Central Television (CCTV) headquarters, right, and other commercial buildings in the central business district in Beijing, China, on Monday, Sept. 8, 2014. China is scheduled to release figures on consumer and producer prices on Sept. 11. Photographer: Brent Lewin/Bloomberg
Brent Lewin/Bloomberg
Visa and Mastercard did not return requests for comment by deadline.
It’s the latest in a series of regulatory headwinds for Visa and Mastercard in China. The Chinese government expressed an openness to the card brands as early as 2015, while some overtures to U.S. payment companies date as far back as 2001.
While Visa and Mastercard both expressed an interest in opening markets in China, the 2015 move stalled over requirements of local investments of more than $150 million and a substantial local presence to process payments.
China promised to clarify those requirements, but in 2017 actually added more requirements for external payment companies.
In 2018, it appeared China was lightening regulations again by rewarding a preliminary approval to WorldFirst, though there’s been little movement since and the trade dispute between the U.S. and China has further complicated U.S. corporate attempts to enter the domestic Chinese payment market market.
The American payments companies have long viewed China and its population as a key global market, but they continue to lose potential ground to the powerful Alipay and WeChat Pay mobile wallets, in addition to the UnionPay card's continued growth.
As tariff turbulence continues, BofA is predicting a slowdown, not a downturn. But America's second-largest bank is also signaling that it's prepared for a more severe scenario.
The Office of the Comptroller of the Currency says it's still reviewing compromised emails and attachments after hackers gained access to the regulator for over a year and has not ruled out exposure of customer or supervisory data.
New York AG Letitia James is suing the earned wage access companies for charging illegal, high-interest loans that would have wide-ranging implications for EWA providers. DailyPay last week filed a countersuit against James's office.
CEO Jane Fraser said Tuesday that the bank is positioned well to handle shakiness in the global market, and is still working on its years-long overhaul.
A report from Galaxy, which builds crypto lending platforms, shows borrowers are trusting decentralized players after a centralized platform collapsed in 2022.
A federal judge in Texas found that the Consumer Financial Protection Bureau had violated the CARD Act by barring banks from charging late fees for credit cards.
