Business

Everywhere They Want to be, and Now China, Too

Published

10 years ago

April 23, 2015

This April 22, 2005 file photo shows logos for MasterCard and Visa credit cards at the entrance of a New York coffee shop. Fair Isaac, the company behind the widely-used FICO credit score, on Thursday, April 2, 2015 announced a pilot program to help millions of Americans get easier access to credit, based on their record of paying utility bills, instead of their history of loan repayments. (AP Photo/Mark Lennihan, File)

This April 22, 2005 file photo shows logos for MasterCard and Visa credit cards at the entrance of a New York coffee shop. (AP Photo/Mark Lennihan, File)

KEN SWEET, AP Business Writer

NEW YORK (AP) — The Chinese are spending trillions of dollars on their credit and debit cards, and U.S. companies are finally getting a slice of that giant pie.

China announced Wednesday that foreign companies like Visa, MasterCard and American Express can bring their payment processing networks into that country, starting June 1.

The news sent shares of Visa and MasterCard soaring.

The Chinese payment industry is massive, and up until this announcement, was closed off to foreign-owned companies.

While foreigners or locals in the world’s second-largest economy could use their Visa or MasterCard, the companies were charged a fee by a government-approved company called UnionPay to process transactions. Chinese Visas or MasterCards had to be co-branded with UnionPay.

Customers in China spent $5.2 trillion on UnionPay’s network in 2013, according to China’s Central Bank, up 48 percent from the year before. By comparison, Visa handled $6.9 trillion in transactions on its global network in the same year.

“China obviously represents a massive opportunity for the networks … and one that the networks have been attempting to access for years,” Keefe, Bruyette & Woods analyst Sanjay Sakhrani said.

Visa, MasterCard and American Express now will be allowed to set up their own networks in China through a subsidiary, China’s State Council said. The move is an effort to “promote healthy competition in the country’s bankcard clearing market,” the regulator said.

China’s payment industry has been a sore spot between the U.S. and that country for some time. The World Trade Organization ruled in 2012 that UnionPay was effectively a government-sanctioned monopoly.

Payment processors make most of their money by charging a small fee on every transaction in their networks. Access to China’s growing market could generate a significant amount of new revenue for Visa, MasterCard and American Express, once they establish a presence there.

“We are hopeful these new regulations will permit additional participants in the Chinese domestic market,” said Visa spokesman Paul Cohen.

MasterCard said China’s announcement was a “step in the right direction.”

Visa’s stock jumped $2.86, or 4 percent, to $68.21 in afternoon trading and MasterCard rose $3.73, also 4 percent, to $91.50.

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Oakland Post: Week of December 18 – 24, 2024

The printed Weekly Edition of the Oakland Post: Week of December 18 – 24, 2024

Published

2 days ago

December 20, 2024

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BWOPA Honors Black Leadership and Legacy at 2024 Ella Hill Hutch Awards Dinner

On Dec. 5, BWOPA held its Annual Ella Hill Hutch Awards Ceremony, at the Fairmont Claremont Hotel in the Oakland/Berkeley Hills. At the event, the group comprised of Black women from various professional backgrounds, honored distinguished local and state leaders whose contributions have shaped civic engagement and advanced critical social issues impacting Black communities.

Published

4 days ago

December 18, 2024

Oakland Post

L-R: BWOPA State Executive Director LaNiece Jones; State Asm. Mia Bonta; BWOPA 2024 Man of The Year/Urban League SFBA CEO Ken Maxey; BWOPA State President Hon. Dezie Woods-Jones; State Senator Lola Smallwood-Cuevas; Rowena Brown, Oakland Councilmember At-Large, Elect; BWOPA State Regional Director Vashone Huff. Courtesy photo.

By Oakland Post Staff

Black Women Organized for Political Action (BWOPA) is a statewide non-profit advocacy and membership organization committed to solving problems affecting Black Californians.

On Dec. 5, BWOPA held its Annual Ella Hill Hutch Awards Ceremony, at the Fairmont Claremont Hotel in the Oakland/Berkeley Hills.

At the event, the group comprised of Black women from various professional backgrounds, honored distinguished local and state leaders whose contributions have shaped civic engagement and advanced critical social issues impacting Black communities.

The evening was hosted by Dr. Shawna Charles, founder of The Charles Communications Group (CCG) headquartered in Los Angeles. Charles served as mistress of ceremonies.

With a track record of elevating voices and empowering communities, Charles’ leadership and insight brought a certain dynamism to the celebration.

“Each year, this event not only celebrates the enduring legacy of our beloved BWOPA founding member, Ella Hill Hutch, but also reaffirms and amplifies our unwavering commitment to building and sustaining Black political power across California,” said Dezie Woods-Jones, BWOPA founding member and State president.

“Ella Hill Hutch’s trailblazing leadership continues to inspire us as we forge ahead, empowering Black women to lead, advocate, and shape a more equitable future for all,” added Woods-Jones.

This year’s event introduced the DWJ Rising Star Award, honoring young leaders like Solano County Board Supervisors-elect Cassandra James, Danielle Motley-Lewis, Naomi Waters and newly elected State Assemblymember elect Rhodesia Ransom (D-Stockton).

According to organizers, the awardees all exemplify “the next generation of changemakers.”

Other awardees included:

Lifetime Achievement Awardees: Congresswoman Barbara Lee (D-CA-12) and Alameda County Supervisor Keith Carson
Man of the Year: Kenneth Maxey, CEO of the Greater SF Bay Area Urban League
President’s Corporate Award: Yvette Radford, Kaiser Permanente
In the Spirit of Ella State and Chapter Awards: Dr. Carolyn Greene, Dr. Marcella K. Smith, Dr. Carolyn Drake, Tinisch Hollins, Jackie Jones, Gloria Burgess Johnson, Tamika L’Ecluse, Ellen Nash, Betty Reid Soskin, and Ay’Anna Moody.

BWOPA also celebrated local champions across its chapters, including leaders in voter education, healthcare, criminal justice reform, and community advocacy.

In a statement, BWOPA said, “Honoring Ella Hill Hutch’s legacy, BWOPA recognizes her pioneering efforts as the first Black woman elected to the San Francisco Board of Supervisors. Her tireless work amplifying underrepresented voices continues to inspire BWOPA’s mission to build Black political power across California.”

“We extend our heartfelt thanks to our members, partners and allies who believe in BWOPA’s vision to invest in building power for Black women’s leadership,” said LaNiece Jones, BWOPA State executive director. “Your support ensures that Black women have a voice at decision-making tables locally, regionally, statewide, and nationally, advancing diversity and equity in leadership spaces.”