Mastercard, Bank of Shanghai boost China transfers

Mastercard has agreed a collaboration with Bank of Shanghai to add bank account connectivity in China to Mastercard Move, its cross-border money movement platform.

The tie-up covers bi-directional payment flows between China and international markets. It extends Mastercard Move's reach in the country beyond existing connections to Alipay and WeChat Pay digital wallets and UnionPay cards.

Mastercard Move is part of Mastercard's broader payments business and focuses on cross-border transfers across different payment types. The platform operates in more than 200 countries and territories and supports more than 150 currencies.

Trade payments

A central part of the collaboration targets small and medium-sized enterprises that send and receive trade-related cross-border payments. China remains one of the world's largest trading corridors and exports more than USD $3 trillion annually, according to figures cited by Mastercard.

With the Bank of Shanghai integrated, inbound cross-border payments can be delivered into China's bank account network. This is designed to make it easier for overseas firms to pay Chinese suppliers using account-to-account routes.

Inbound payments will include multi-currency options, including CNY and USD, and can be processed through domestic clearing rails such as CIPS.

On the outbound side, the collaboration covers payments sent by Chinese SMEs to international suppliers. Mastercard Move provides access to routes into markets across North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

Mastercard framed the outbound offer around speed, transparency, and payment tracking, with settlement in Chinese yuan or US dollars.

The announcement follows the launch of Mastercard Global Commerce Suite for Small Businesses, a package of bank-facing services built on Mastercard Move. Mastercard linked the suite to cross-border commerce management for SMEs in the Asia Pacific.

Remittances and fees

The collaboration also expands outbound payment options from China for personal transfers, including remittances and international education payments to destinations in the Asia Pacific, Europe, the Middle East and Africa, North America, and Latin America.

China sends hundreds of thousands of students overseas each year. Mastercard puts the number at nearly 700,000 annually.

Mastercard said the new connectivity will provide more predictable foreign exchange handling, simpler documentation, and faster processing for families and students. Receiving institutions are expected to gain improved reconciliation and payment visibility.

"As a global hub for trade and remittances, China sits at the centre of how people and money move around the world," said Pratik Khowala, Global Head of Transfer Solutions at Mastercard.

"With this collaboration, we're extending our multi-rail capabilities across cards, digital wallets and bank accounts to give banks and payment service providers across the world a single, trusted platform to send funds to China. At the same time, businesses and people in China can rely on our global network to send money quickly and securely to destinations worldwide. This collaboration strengthens a vital financial bridge between China and the rest of the world, supporting millions of SMEs, families and students who rely on fast, reliable cross-border payments every day," said Khowala.

China payout network

Mastercard has been building a payout footprint in China across common consumer and business payment endpoints. Mastercard Move can route payments to cards through connectivity with UnionPay, to digital wallets through Alipay and WeChat Pay, and now to bank accounts via Bank of Shanghai.

The new bank account route broadens the options for international senders that need to reach Chinese recipients who prefer account-based settlement. It also gives Chinese senders a path to push funds abroad through a single integration with Mastercard Move, depending on how banks and payment providers package the service.

Bank of Shanghai is a China-based lender with a domestic network and cross-border services. It is listed on the Shanghai Stock Exchange.

"This collaboration with Mastercard marks an important milestone for both organisations as we work together to support China's deeper integration with the global economy and make finance work better for people and businesses. In today's environment, efficient and transparent cross-border capital flows are essential, whether for domestic SMEs looking to join global supply chains or for Chinese families pursuing overseas education opportunities. By combining Bank of Shanghai's strong local service capabilities with Mastercard Move's global money movement network, we will deliver faster, more predictable cross-border payments for both businesses and individuals," said Yu Minhua, Deputy President, Bank of Shanghai.

"Looking ahead, we will continue to deepen our relationship with Mastercard to build a more resilient financial services ecosystem that supports payments into and out of China, and further strengthens economic and trade connectivity between China and the world," Minhua said.