China will open its market to the international payment systems

Almaty. June 8. Silkroadnews – Chinese authorities have allowed the foreign payment companies to operate at the local market estimated at 55 trillion yuan ($8.4 trillion), Reuters reports.

According to the new rules issued by the China Banking Regulatory Commission and Central Bank of China, to start working within the country the foreign payment system shall have a company with a capital of not less than 1 billion yuan ($152.2 million) operating in China. It must also comply with local regulations concerning national security and cyber security standards.

A year ago, China’s State Council said the country will allow the foreign firms to operate in clearing activities and bank cards. The authorization given today, the agency notes, is a response to the WTO ruling saying the Chinese authorities discriminated against the US payment system in the country.

“There will be more different players operating at the local market of bank cards in the future,” the officials answered to questions following the Central Bank’s publications in this regard.

The foreign payment systems meeting the criteria required may apply for the opening of businesses subject to the same conditions as required for the local companies. Furthermore, they are also allowed to acquire the local clearing companies.

Within 90 days after submitting the application the department in charge shall issue a decision on approval of the company. As soon as a due permit has been obtained, the company is given a year to start operations.