UnionPay faces Visa challenge in China

Payment network Visa has applied for a bank clearing license in China.

That's according to Business Insider, who report that, if successful, Visa would become the first non-Chinese company to hold such a license.

Visa will seek to challenge UnionPay in the rapidly expanding Chinese payment market. [Photo: Asianewsphoto]

The publication also highlights the astonishing fact that even though 99 percent of UnionPay's cards are held in China, the network still accounts for over a third of all global card transactions.

UnionPay's position in the Chinese market is dominant, and this could certainly be an interesting battle to watch.

It's just the latest in a series of recent stories about global payment methods and networks competing for transactions.

Recently, we revealed that Apple Pay has expanded in China and the UK, announcing a number of new banks that will now support the platform.

In total, 40 new banks in China, the UK and the USA will now offer their customers the chance to use Apple Pay.

In China, these include Bank of Hainan along with the Chinese overseas bank EverTrust.

British banks Tesco and Danske (UK) Bank are now offering full services on the platform.

What's more, Chinese firm Alipay is set to challenge the likes of Apple Pay and Paypal on their home turf.

The firm, which is one of the dominant forces in Chinese online payments, will shortly become a payment option in four million North American businesses.

Initially, this will be primarily of use to Chinese tourists in America.

However, as access to Alipay expands, it's expected that more and more Americans will start to use their services, too - perhaps as an alternative to Apple Pay and Paypal.