Beijing breaks payment card market monopoly

Visa and MasterCard have welcomed China’s plans to open up its market for clearing domestic payment card transactions, as they stand to gain access to a growing market worth more than $1 trillion a year.

While China lags behind countries such as the USA in spending on credit, habits are

Retailers welcome China ruling on card market

changing fast and the Chinese are increasingly swiping plastic to satisfy their growing appetite for consumer goods.

The State Council, China’s cabinet, said on Wednesday after a weekly meeting that foreign firms that meet its criteria could set up their own clearing companies. It did not provide details.

Visa, the world’s largest credit and debit card company, welcomed the move.

“We look forward to seeing the specific details and working with people within China to figure out what we need to do to participate in that marketplace, where we believe we can add a lot of value,” Chief Executive Officer Charlie Scharf said on a conference call, following the release of its fourth-quarter earnings.