American Express (NYSE: AXP) announced today that its joint-venture in mainland China, Express (Hangzhou) Technology Services Company Limited (“Express Company”), has received approval from the People’s Bank of China (PBOC) for a network clearing license. With this, American Express becomes the first foreign payments network to be licensed to clear RMB transactions in mainland China. The company expects to begin processing transactions later this year.
Express Company is American Express’ joint venture with Lianlian DigiTech Co., Ltd, a Chinese fintech services company. Express Company has built a network to clear domestic transactions charged on American Express branded cards, and is also compatible with the key mobile wallet players in China.
“We are pleased to be the first foreign company to receive this license. This approval represents an important step forward in our long-term growth strategy and is an historic moment, not only for American Express but for the continued growth and development of the payments industry in mainland China,” said Stephen J. Squeri, Chairman and Chief Executive Officer of American Express. “We look forward to welcoming millions of new consumers, businesses and merchants in China to American Express, as well as continuing to enhance our support for our global customers when they travel to the region.”
Zhengyu Zhang, Chairman of LianLian DigiTech Co., Ltd. said, “Lianlian is committed to providing the best payments and payment-related fintech services to our commercial customers and consumers across the globe. Against the backdrop of globalization and China’s opening-up of its financial industry, we have been actively introducing China’s mobile payments to the world, while striving to learn from and connect with world-class financial companies. We are confident that our joint venture with American Express will provide more diversified bank card services to consumers and commercial customers in and outside of China.”
Walter Liu, CEO of Express Company said, “We are proud to be the first licensed foreign payments network in mainland China. We will offer our partners differentiated services by bringing together the best from American Express and Lianlian. Our focus now is to continue the preparation work for a successful business launch by working closely with the regulators and partners.”
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This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties and contain words such as “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely” and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update or revise any forward-looking statements. Actual results may differ from those set forth in the forward-looking statements due to a variety of factors, including those described in American Express Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and the company's other reports on file with the U.S. Securities and Exchange Commission.
About American Express
American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com and connect with us on facebook.com/americanexpress, instagram.com/americanexpress, linkedin.com/company/american-express, twitter.com/americanexpress, and youtube.com/americanexpress.
Key links to products, services and corporate responsibility information: charge and credit cards, business credit cards, travel services, gift cards, prepaid cards, merchant services, Accertify, InAuth, corporate card, business travel, and corporate responsibility.
Lianlian DigiTech Co., Ltd., founded in February 2009, offers all-round financial services for consumers and small- and medium-sized enterprises around the world through its financial, payments, and clearing services systems.