Payment market to get opening-up boost

The nation's latest move to further open up its financial services sector by allowing the first foreign card network to clear card payments in the country will promote sound development and healthy competition in its payments market, according to industry professionals and experts.

The People's Bank of China, the central bank, announced on Friday it had approved a joint venture of American Express Co in China regarding its application to commence operational preparations for a card clearing institution in the country, making the US-based multinational financial services corporation the first of its kind to gain direct access to the Chinese bank card payment market.

Express (Hangzhou) Technology Services Co, a joint venture formed by American Express and Chinese fintech company Zhejiang LianLian Technology Co, is required to complete operational preparations within a year and get the green light from the central bank before running the card clearing business, the PBOC said in a statement on its website.