Mastercard eyes booming Chinese consumer market
Payment network processor banks on innovation to improve service in nation
The transformation of the Chinese economy which utilizes more innovation-driven and consumption-oriented drivers will further consolidate its solid fundamentals, bringing more business opportunities for foreign investors, said a senior executive of Mastercard.
Ling Hai, president for Asia-Pacific, Europe, Middle East and Africa at Mastercard, made the remarks in an exclusive interview with China Daily during the recently held China Development Forum, a two-day event that wrapped up on Monday.
“I think the transformation of the Chinese economy to more consumption-driven and more innovation-driven, in the end, is about a long-term sustainable and more balanced growth model,” Ling said.
“Mastercard can play a role in participating in Chinese domestic economic activities.”
Ling said the payment network processor can support consumer spending to drive consumption, especially high-quality consumption, to move from goods to services and experiences.
“We’ve been in China for almost 40 years and our business model originally was dependent on crossborder (activities). There’s still a lot of work to do in the area, but now we have a domestic license so we can support the domestic activities of Chinese consumers,” Ling said.
He also said that although it is difficult to predict what kind of new technologies will emerge, innovation is always key to boosting productivity.
“Innovation is also at the heart of the card business the company operates, as it drives financial inclusion, supports small businesses and promotes consumption,” Ling added.
Over the years, Mastercard has built quite a visible cross-border portfolio in China, with millions of bank cards and acceptance points across the country.
Mastercard NUCC Information Technology (Beijing) Co Ltd, a joint venture between Mastercard and NetsUnion Clearing Corp, received formal approval from the People’s Bank of China — the nation’s central bank — late last year for domestic bank card clearing activity in China and recently launched the business.
The development allows Mastercard cardholders in China to enjoy payment services provided by the company both at home and abroad.
The State Council, China’s Cabinet, published a guideline on improving payment services and enhancing payment convenience in early March to better meet the diversified payment needs of the elderly and foreign visitors.
The executive also emphasized the importance of improving multiple payment channels to enhance payment convenience for inbound travelers.
“The ecosystem in China has evolved into more digital wallet and QR-based, but that’s not how the rest of the world works. For any inbound traveler, behaviors are very difficult to change, and that’s a huge area still worth investment and development. We are getting a lot of support from the Chinese government and will work with the other private players as well as banks in China to foster an ecosystem that’s really friendly to inbound travelers,” Ling said.
The financial services provider enabled inbound acceptance via Alipay and Tencent wallets earlier this year, allowing international cardholders to pay like local people at QR code payment points when traveling around China.
I think the transformation of the Chinese economy to more consumptiondriven and more innovation-driven, in the end, is about a long-term sustainable and more balanced growth model.”
Ling Hai, president for AsiaPacific, Europe, Middle East and Africa at Mastercard