China Ends UnionPay Monopoly on Card Clearing
Nov. 3, 2014
Late last week, reports out of China indicated the Chinese government will end China UnionPay’s monopoly on card clearing, opening the door to other card networks to clear yuan-denominated transactions in the country. A Reuters report said other networks will be able to clear card transactions in China beginning in August 2015 although the date has not been official confirmed by the State Council.
In 2012, the World Trade Organization criticized UnionPay’s position as monopolistic in response to a U.S. complaint. Any company that wanted to accept card payments in yuan had to use the UnionPay network and pay the company a transaction fee.