AmEx Becomes First Foreign Firm to Clear Payments in China

American Express, a United States Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term giant, has received a networking clearing license from the People’s Bank of China (PBoC) through its local joint subsidiary Express Technology.

Announced on Saturday, the US payments company has become the first foreign company to receive such a license in mainland China to clear RMB transactions.

“We are pleased to be the first foreign company to receive this license. This approval represents an important step forward in our long-term growth strategy and is a historic moment, not only for American Express but for the continued growth and development of the payments industry in mainland China,” Stephen J. Squeri, chairman and chief executive of American Express, said.

Opening up of the Chinese payments market

Express Technology is a joint venture between American Express and local Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term services company Lianlian DigiTech. The company has already built a network to clear domestic transactions charged on American Express-branded cards and is also compatible with the key mobile wallet players in China.

In the press release, American Express highlighted that the company is working to start processing Renminbi transactions later this year.

China is slowly opening up its financial market for foreign companies as last October the central bank approved PayPal’s acquisition of local payments firm GoPay.

“Against the backdrop of globalization and China’s opening-up of its financial industry, we have been actively introducing China’s mobile payments to the world, while striving to learn from and connect with world-class financial companies,” Zhengyu Zhang, chairman of LianLian DigiTech, added.

“We are proud to be the first licensed foreign payments network in mainland China,” Walter Liu, CEO of Express Company, said. “We will offer our partners differentiated services by bringing together the best from American Express and Lianlian. Our focus now is to continue the preparation work for a successful business launch by working closely with the regulators and partners.”