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ASIAdocument.write(“” + m[today.getMonth()+1]+ ” “+ today.getDate()+”, ” + theYear + ” “);HOMECHINAWORLDBUSINESSLIFESTYLECULTURETRAVELSPORTSOPINIONREGIONALFORUMNEWSPAPERChina Daily PDFChina Daily E-paperChina Daily Global PDFChina Daily Global E-paperBusiness /ViewEconomyPolicy WatchChina DataCompaniesMarketsIndustriesViewMotoringTechGreen ChinaOpen bank card clearing market raises competition, benefits consumers(Xinhua)Updated:2014-10-31 09:42Comments Print Mail Large Medium SmallBEIJING – China will open bank card clearing to foreign companies to improve competition and reduce costs to card issuers and users.The State Council announced on Wednesday that foreign companies which meet certain criteria will be allowed to set up clearing networks in China.”The move is aimed at wider opening of Chinas financial market and boosting innovation in bank card market and payments market,” the cabinet said in a statement.UnionPay spreading wings beyond China Shell launches new payment facility The liberalization could be a great opportunity for global big names, including Visa and MasterCard.According to a report by the Payment and Clearing Association of China (PCAC), 47.6 billion bank card transactions were made in China in 2013 with a total value of 423 trillion yuan ($68.8 trillion).Clearing companies connect banks, shops and card users together and settle transactions by turning the promise of payment into actual transfer of money from one bank to another. Their profits come mainly by charging commission.Chinas clearing market is dominated by China UnionPay, a state company founded in 2002.A total of 3.8 billion UnionPay cards have been issued by member banks globally and foreign card companies have to piggyback on UnionPays network when accepting yuan payments in China.China promised to reform its payments clearing market in 2012 after the United States filed a complaint to the World Trade Organization accusing China of discriminating against foreign firms.The upcoming foreign penetration is expected to further raise competition in the business as “third party payment” companies, Alibabas Alipay in particular, boasting convenient and free online payment are already eating into the user base of traditional card transactions.How Chinas clearing market will be influenced by an inflow of foreign companies remains to be seen as there are no specific measures in place, but commission and other fees are expected to fall in a more competitive environment.Commission rates in department stores, supermarkets and restaurants now range from about 0.38 percent to 1.25 percent.”I believe opening up the clearing market will largely improve services, lower costs and benefit the real economy and consumers,” said Guo Tianyong, a banking researcher with the Central University of Finance and Economics.With more companies, rules should be updated to regulate the business, according to Yang Tao, head of the Payment and Clearing Research Center under the Chinese Academy of Social Sciences.”Policymakers should strike a balance between innovation and risk control,” said Yang.8.03KRelated StoriesUnionPay spreading wings beyond ChinaShell launches new payment facilityPhotoTop 10 richest Chinese in 2014Jellyfish, hermit crabs turn petsBeijing water plant ready for water diversion projectJack Ma: sports fan or the next mogul?Online retailers gear up for double 11Shopping mall develops farmland to promote green lifestyleChina Economy By NumbersChina Economy by Numbers – Dec China Economy by Numbers – Nov NewsmakerCICC chief steps down from post Levin Zhu resigns from CICCMost ViewedTodays Top NewsUS QE exit to put further pressure on Chinas slowing economyShanghai-HK stock link in final preparations: regulatorAlibaba says its trading volume to exceed Walmart in two yearsPrecious metal shipments to Hong Kong under scrutinyNew chapter for M&A as China growth story endsChallenges persist for Chinese firms in UKForeign language apps find a larger followingSales of commercial housing in Zhejiang slump by 19.5%Hot TopicsFiat SpA Peugeot SA Taxi app Internet finance Housing price Disneyland 12306.cn WeChatEditors PicksTop 12 economic data of China in Sept Top 10 textile companies in China Where have Chinas big group-buying websites gone? Chinas Top 10 stock market milestones SpecialsWhat to expect from Alibaba IPO2014 Chengdu Motor ShowPTC ASIA 2014 is scheduled to open from Oct 27…Media : |State Administration of Foreign Experts Affairs|QQ International|Peopleforum|workercn.cn|Partners : |State Administration of Foreign Experts Affairs|QQ International|Peopleforum|workercn.cn|Portals : |www.chinaso.com|Sina|Sohu|Tencent|Organizations : |China US Focus|FrenCham|CPAFFC|Gov.cn|eBeijing|AmCham|…| About China Daily | Advertise on Site | Contact Us | Job Offer |Copyright 1995 -. 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