PURCHASE, N.Y.—Will MasterCard become a payment service provider in China?
According to Reuters report, that will likely happen, as MasterCard told the news outlet it hopes to apply this year to provide payment services in China after that country’s government opened up its market to foreign payment card companies.
But Reuters noted that MasterCard is weighing whether to do so alone or with a partner.
Ann Cairns, president of international markets for MasterCard, told Reuters that China is "pretty crucial" to its future. Yet MasterCard is still studying rules in China that would affect its business and is hammering out a business plan, she said. China in June allowed foreign payment card companies to operate in the country under new rules, potentially giving companies like MasterCard and Visa access to its 55 trillion Yuan ($8.25 trillion) card payment market.
Under the rules, China's national security and cyber security standards must be met. Applicants must also hold 1 billion Yuan in registered capital in a local company, Reuters noted.
"We're trying to understand the rules," Cairns told Reuters, adding that MasterCard would like to enter China as soon as possible. "Certain things inside the rules – such as the new cyber rules, which need more development and understanding about how they’re going to work."