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.
AmEx formed a joint venture with LianLian, a Chinese fintech-services firm, that will let charges on American Express-branded cards be cleared and settled in China, the New York-based company said Friday in a statement.
- The approval shows progress in payment networks’ battle for access to mainland China, which were one point of contention raised in the Trump administration’s trade talks.
- The company will have to battle rivals WeChat Pay and Alipay, which dominate the mobile-payment market in China.
- AmEx may have an opportunity to gain market share in the commercial and small-business segments, according to a note from Sanjay Sakhrani, an analyst at Keefe Bruyette & Woods Inc.