Daily Dash: Mastercard Joint Venture Begins Processing Domestic Transactions In China

May 13, 2024
With several key regulatory approvals in hand, Mastercard has begun processing domestic payments in China; meanwhile, Australia’s NAB looks to increase "pay by bank" adoption among merchants.

Mastercard Joint Venture Begins Processing Domestic Transactions In China

Mastercard NetsUnion has begun processing domestic payments made in China using Mastercard cards issued by the country’s banks.

Michael Miebach, CEO of Mastercard, said the move is a "significant milestone" in the company's 40-year history in China.

In February 2020, the People’s Bank of China (PBOC) granted principal approval for Mastercard NetsUnion to begin formal preparations for a domestic bank card clearing institution in China.

Since then, the joint venture has established standards, rules, structures and infrastructure in line with local regulatory requirements and obtained the required certificates for a local switch business.

In November 2023, Mastercard NetsUnion received formal approval from the PBOC and the National Administration of Financial Regulation (NAFR) to commence domestic bank card clearing activity.

New NAB Partnership Looks To Accelerate Pay By Bank Adoption In Australia

National Australia Bank (NAB) has partnered with global fintech Banked in an effort to increase merchant adoption of account-to-account payment solutions.

The partnership aims to boost the use of "pay by bank" technology using PayTo, an account-to-account addressing service from Australian Payments Plus (AP+).

“Pay by bank capability will enable merchants to send PayTo Agreements to their customers and initiate payments and refunds according to their PayTo agreements,” Banked said in a statement.

This addresses a range of scenarios for merchants such as online payments, scheduled recurring payments with fixed or variable amounts, and split payment amounts.

"The nascent A2A payments industry in Australia presents an incredible opportunity,” said Banked CEO Bread Goodall. “Local regulators have developed well-constructed mandates and the banking industry is primed for innovation, all of which sets the stage for rapid growth in real-time payments.”

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