Ripple has finally made its way into the Chinese market. This is through an approval of a joint operation of LianLian Group and American Express (AmEx) by the Chinese authorities. The approval will enhance the processing of card payments in China. As Ripple goes to China, AmEx becomes the first American company to gain a direct entry into the China e-commerce market.
In the recent past, the rapid growth of the Chinese market has continued to hit headlines. This has attracted traders from all walks of life. A further prediction has it that the market is likely to become one of the biggest users of card payments by late next year.
The partnership between Ripple, American Express and LianLian Group is not particularly surpursing. The three are members of RippleNet, thus, they have been working together for a while. Besides, AmEx is similar to MasterCard and had been seeking entry into the Chinese market for a long time. Ripple’s entry into China’s e-Commerce market will facilitate faster processing of card payments and also offer higher efficiency.
Previously, it has been very difficult to make card payments while outside of China. This is not only because of the strict policies of the Chinese but also the state-monopoly consortium, which acted as a barrier. Only UnionPay network had the mandate of operating outside the state.
Speaking to Reuters, the central bank said, “The approval is a “significant step toward opening up China’s bank card market to foreign investors.”
The Chinese government is interested in the use of blockchain
China has been holding a strict policy against cryptocurrencies. In fact, there had been a ban on them entirely. However, as Ripple enters China it indicates that the Chinese government now wants to be part of blockchain technological innovation. This is perhaps the reason why it has lifted the ban and furthermore the use of digital assets is now a legalized tool of payment.
Meanwhile, China’s e-commerce market is likely to increase to ten billion by 2020. As a result of this forecast, a reliable source has it that other card-payment companies will be seeking to penetrate the market.