Fintech Fallout from US-China Trade Dispute
US-based Visa and Mastercard face additional headwinds in entering the Chinese market. According to FT, China’s central bank known as the People’s Bank of China declined to acknowledge Visa and Mastercard’s applications to process renminbi payments. Sources claim their applications were submitted over a year ago and according to application procedures published in 2017, applications must be decided within 90 days of submission. Previously in a statement PBOC said, “[We] will open access to China’s payment card clearance market in a transparent, fair and equal way.”
This is among the first fintech casualties from the US-China trade dispute. Things could get back on track later this year but the Chinese government may be signaling that it will be very deliberate about considering new foreign entrants into the coveted domestic Chinese payments industry. For CardLinx members, the key area to focus on for 2019 is cross-border payments with China not domestic Chinese payments and offers.