By Xu Ping Iris Feng and Feng Yuan King & Wood Mallesons’ Mergers & Acquisitions Group
On April 9, 2015, the State Council officially promulgated the Decision on the Bank Card Clearing Agencies Access Management (《关于实施银行卡清算机构准入管理的决定》) (the“Decision”), which will come into effect on June 1, 2015.
As a response to a WTO ruling that China must open its bank card clearing market, the long awaited Decision announces the opening of market to both domestic and foreign players. As a result, China UnionPay, the only domestic bank card clearing agency for decades, will usher competitors, including international card companies, banks, as well as domestic third party payment agencies, who will be able to operate RMB-denominated bank card clearing business in the People’s Republic of China (the “PRC” or “China”).
Continue Reading New Bank Card Clearing Rules Heralds a Post-UnionPay Era