Mastercard today is pleased to announce that it has received in-principle approval from the People’s Bank of China (PBOC) to begin formal preparations to set up a domestic bankcard clearing institution in China.

The application was submitted by Mastercard NUCC Information Technology (Beijing) Co., Ltd, a joint venture of Mastercard and NetsUnion Clearing Corporation (NUCC).

Ajay Banga, president and CEO, Mastercard, said, “We are delighted and encouraged by this latest decision from the PBOC. China is a vital market for us and we have reiterated our unwavering commitment to helping drive a safer, more inclusive and seamless payments ecosystem for Chinese consumers and businesses.  We remain focused on working with the Chinese government and local partners to grow the overall payments infrastructure.”

The strategic collaboration between Mastercard and NUCC is founded on mutual synergies, and will drive a simple, safe and smart payments experience in a market well regarded as being one of the global frontrunners in digital payments technology.

Within one year, the company will be able to apply to the People’s Bank of China for formal approval to begin domestic bankcard clearing activity.