Digital Transactions Authoritative, insightful and timely information for payments professionals
U.S. payments networks continue to cultivate their connections to what is for them a potentially massive market in China. In the latest development, Leshua Technology announced early Friday it will support acquiring for American Express Co.’s joint venture in China.
AmEx last year became the first foreign payments company to win approval to clear domestic transactions in mainland China. The card company, which in 2018 had gained clearance from the Peoples Bank of China to enter the Chinese market, is part of a joint venture in that country with LianLian DigiTech Co. Ltd., a Chinese fintech.
Express Technology Services Co. Ltd., AmEx’s joint venture with Leshua, will start processing later this year transactions on AmEx-branded cards, according to an announcement from Shenzhen-based Leshua. The company, a unit of Yeahka Ltd., said it has been “upgrading and innovating” terminal products, including devices offering QR-code and barcode scanners and facial recognition.
With its massive population and well-developed domestic payments market, China has offered a tempting market for U.S. payments firms. Mastercard Inc. has formed a joint venture with NetsUnion Clearing Corp. for domestic bank card clearing, and PayPal Holdings Inc. holds a majority position in Guofubao Information Technology Co. Ltd., also known as Gopay. The PayPal venture offers online payments processing.
A trade agreement signed last year allows U.S. payments firms to operate in China as wholly foreign-owned entities.
