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CMSPI – IAC State of the Industry Report
CMSPI – IAC State of the Industry Report
Figure 2.6 – Card Network Market Shares in APAC 77
The card network markets of most APAC countries in scope are dominated by Visa and Mastercard with two notable exceptions in China and South Korea. In China, the state-owned China UnionPay encompasses nearly 98% of the total network market share. In recent years, the Chinese government has indicated its desire to open the domestic network market with two global card networks – American Express and Mastercard – receiving permission to settle payments domestically (which were previously only restricted to international settlement). In 2020, American Express’s joint venture gained network clearance and soon after announced its processing partnership with Leshua Technology. 78 Mastercard’s joint venture was approved in November 2023 and is set to be processed with NetsUnion Clearing. 79 Meanwhile, Visa, which submitted its application in 2018, is still awaiting approval. 80 In South Korea, the average adult has more than six different payment cards that are rotated around in usage based on discount and cashback rewards. 81 As a result, South Korea exhibits a highly fragmented and localized payments supply chain in which acquirers often function within a three-party card model, serving both as the issuer and network. The exception to this pattern is BC card, which operates in a four-party card model, solely serving as the card network.
77 Market shares are based on card transaction value. Some of the names have been shortened for legibility. Euro- monitor. 78 https://www.digitaltransactions.net/amex-deepens-its-ties-in-china-via-an-acquiring-agreement-with-leshua- technology/ 79 https://investor.mastercard.com/investor-news/investor-news-details/2023/Mastercard-JV-Approved-to-Be-
gin-Domestic-Payments-Processing-in-China/default.aspx 80 https://www.reuters.com/article/idUSKBN23K0AW/ 81 Payment methods in South Korea - Adyen
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