AMERICAN Express Co. said the People’s Bank of China approved its license to become the first foreign payments company allowed to build a network in the nation.

The U.S. multinational financial services corporation can now begin building a network business to process domestic yuan transactions through its joint venture on the Chinese mainland.

American Express has formed Express (Hangzhou) Technology Services Co. (Express Co.), a joint venture with Chinese fintech services company LianLian, to build a network business that will enable charges on American Express branded cards to be cleared and settled domestically.

“We are pleased to be the first foreign payments network allowed to build a network on the Chinese mainland,” Stephen J. Squeri, American Express chairman and chief executive officer, said in a press release.

“This is an important next step toward being able to bring the benefits and services of our global network to Chinese customers and expand the ability of our global card members to use their American Express cards on the Chinese mainland.”

LianLian chairman Dixon Zhang said it will work together with American Express to seize this opportunity and do all the necessary preparatory work in accordance with relevant laws and regulations and with the guidance and assistance of the regulatory authorities.

“As a joint venture, we will bring together the power of American Express’ global brand and network, and the local knowledge, resources and experience of LianLian,” Express Co. CEO Walter Liu said.

Bank card clearing market on the Chinese mainland has long been dominated by China’s UnionPay and U.S. giants Visa and Mastercard have also long tried to enter.

American Express will also have to battle rivals WeChat Pay and Alipay, which dominate the mobile payment market in China.(SD News)