Will China be a boon or bust for card networks?

U.S. card companies, such as Mastercard, are making efforts to enter China's domestic market in order to attract Chinese banks and consumers. Mastercard has received approval from the People's Bank of China to offer card services in yuan-denominated transactions. However, American card companies will face competition from China UnionPay, the dominant government-backed card network. While American Express has already gained entry into China, it is unclear if they are winning business. Visa has yet to receive permission to operate in the country. Visa and Mastercard may partner with Chinese banks to offer limited credit services initially, but there is no guarantee that Chinese banks will choose to work with them. The Chinese government's handling of customer data and trade secrets is also a concern. Overall, the process of entering the Chinese market is slow and requires building trust and relationships. [Extracted from the article]

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