This had previously only been rumored, but now the license has officially been granted. It’s hard to say how the high processing fees will be handled, since even Alipay hasn’t really been able to make it work. It’s also worth noting that Mastercard is eyeing this business as well.
The following announcement is reposted from: the American Express WeChat official account
Recently, LianTong (Hangzhou) Technology Service Co., Ltd. ("LianTong"), the joint venture between American Express and LianLian DigiTech Co., Ltd., received a Bank Card Clearing Business License issued by the People’s Bank of China. American Express has become the first, and currently the only, foreign card network in China to obtain a Bank Card Clearing Business License. LianTong plans to officially launch bank card clearing operations within this year.
The bank card clearing network being built by LianTong will process online and offline payment transactions for American Express-branded cards in mainland China, and will also work with major domestic mobile wallet operators.
American Express Chairman and Chief Executive Officer Stephen J. Squeri said: “We are very pleased to become the first foreign card network to receive a bank card clearing business license. This also marks an important step forward in our long-term growth strategy. This is a historic moment, both for American Express and for the continued growth and development of China’s payments industry. We will provide better service in China for our Card Members and business customers around the world, and we also look forward to winning the support of Chinese consumers, businesses, and merchants.”
Zhang Zhengyu, Chairman of LianLian DigiTech Co., Ltd., said: “LianLian has always been committed to providing comprehensive payment and related fintech services to various businesses and individuals in China and around the world. Against the backdrop of economic globalization and China’s two-way financial opening, LianLian Group has not only actively promoted Chinese mobile payments globally, but has also continuously worked to learn from and align with world-class financial institutions. With our joint venture with American Express now obtaining China’s bank card clearing business license, I believe and expect that, through a differentiated service positioning, it will provide more diversified bank card services to consumers and businesses in China and around the world.”
Liu Weide, Chief Executive Officer of LianTong (Hangzhou) Technology Service Co., Ltd., said: “We are very proud to become the first foreign card network and Sino-foreign joint venture in China to receive a bank card clearing business license. We will combine the strengths of American Express and LianLian to provide differentiated services to our partners. At present, under the guidance of regulators, we are continuing to work with our partners to make full preparations for a successful launch.”