Mastercard embraces 'priceless' payment refreshment in China

According to Mastercard's 2024 Travel Trends report, global tourism is booming. Nine out of the past 10 record-setting spending days in the global cruise and airline industries occurred this year, and the Mastercard Economics Institute anticipates the trend will continue as consumers worldwide prioritize meaningful experiences, such as travel.

Furthermore, Mastercard's transaction data underscores robust global consumer spending. In the second quarter of this year, global cross-border payment transactions grew by 17 percent year-on-year, and in China, cross-border travel is likewise showing impressive momentum. Data from online travel agencies shows that during the recent National Day holiday, also known as Golden Week, the average daily order volume of outbound and inbound travel on Trip.com exceeded levels seen in 2019, a record high.

Additionally, data from the Chinese Ministry of Culture and Tourism indicates that from January to July this year, China's inbound tourism witnessed a remarkable surge, with more than 5.72 million foreign tourist visits — a more than 400 percent increase year-on-year. Against this backdrop, as the latest example of Mastercard's ongoing efforts to facilitate China's payment environment, the company and Beijing's rail transit system announced in September that international visitors to the capital will be able to make Tap and Go payments at all rail transit stations in the city by using their overseas-issued Mastercard cards.

With the launch of this initiative, Mastercard is the first international payment network on the Chinese mainland to complete system integration and launch the Tap and Go feature for urban rail transit.

The Tap and Go experience is the latest extension of Mastercard's "Pay Like a Local" payment facilitation program, launched by the company in 2023 to promote inclusive payments and further establish a card-based market in China. Aiming to facilitate inbound tourism and stimulate consumption, Mastercard initially partnered with WeChat Pay and Alipay to enable overseas-issued bank cards to be linked to the two digital wallets. The company has since continuously accelerated expansion of its card-based payment acceptance network, identifying key commercial areas and usage scenarios, such as hotels, public transportation and tourist attractions in hub cities and popular destinations.

As of May 2024, the number of active Mastercard cardholder accounts on Alipay and WeChat Pay increased nearly 10 fold compared to January 2023, while the number of Mastercard offline inbound transactions more than doubled year-on-year.

Beyond cross-border transactions, in November 2023, the joint venture Mastercard NetsUnion received formal approval to commence domestic bankcard clearing activity, and its first transactions commenced in May 2024, allowing Chinese cardholders to use Mastercard branded bank cards issued in the country. By working with local issuing banks, new China Mastercard provides exceptional benefits and features that meet diverse needs. Notably, the latest milestone positions Mastercard as one of the most accepted payment brands in the world.

Improving payment convenience and advancing inclusive and diversified payment ecosystems may be important components in promoting China's high-quality economic growth and high-level opening-up. Mastercard is honored to play its part in those efforts and is committed to serve as a bridge, supporting the flow of travelers and simplifying payments.

"The development of the Chinese payment industry will enable a digital economy that benefits everyone," said Dennis Chang, executive vice-president and division president of Mastercard, Greater China. "We look forward to offering consumers even more choices, helping to better connect China and the world."