Mastercard has announced a strategic partnership between its money movement platform, Mastercard Move, and Bank of Shanghai (BoS) to enable seamless, bi-directional payment flows between China and global markets. This partnership would strengthen global trade by providing fast, predictable payments for small and medium-sized enterprises (SMEs), families, and students moving money to and from China.

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

“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,” he added. 

Enhancing SME trade payments into and out of China

China, one of the world’s largest trading corridors, exports more than US$3 trillion annually. Efficient cash flow is important for both international and Chinese SMEs to maintain supply chains. 

The integration of BoS into Mastercard Move allows global SMEs to send payments directly to Chinese suppliers through China’s extensive bank network, making cross-border payments simpler.

There are many key benefits of inbound payments, including broader access to China’s banking system with direct delivery to local accounts and lower-cost transfers, helping SMEs manage tight operating margins. 

Outbound payments offer speed and transparency, allowing for clear status tracking. This ensures quick fund arrival and enhances payment certainty, reducing cash flow risks for SMEs in international supply chains.

Chinese SMEs can leverage Mastercard Move’s global money movement network, which covers North America, Europe, Asia-Pacific, Latin America, and EMEA, to pay their international suppliers.

There are also advantages for outbound payments. This includes speed and transparency with clear status tracking, quick fund arrival and greater payment certainty, and reduced cash flow risks for SMEs managing international supply chains. 

Cross-border operations and reconciliation would also become simplified with multi-currency settlement options in CNY or USD.  

Yu Minhua, Deputy President, Bank of Shanghai, quoted, “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,” he added.

The newly launched Mastercard Global Commerce Suite for Small Businesses, powered by Mastercard Move, provides banks with tools to help SMEs in Asia-Pacific manage cross-border commerce more effectively.

Mastercard’s comprehensive payment network in China

This collaboration builds on Mastercard’s broader strategy to offer a comprehensive payout network in China. Mastercard Move now connects to all major payment endpoints, enabling international consumers and businesses to pay Chinese individuals and companies through their preferred channels. 

This includes i) cards, via connectivity with UnionPay, offering a broad reach for consumers and merchants ii) digital wallets, including Alipay and WeChat Pay, supporting China’s dominant mobile-first payment ecosystem iii) bank accounts, now enabled through the BoS connection, allowing delivery to accounts across China’s wider banking network.

Mastercard Move is a global money movement platform that enables banks, corporates, non-bank financial institutions, digital players, and governments, and their customers, to send and receive funds across borders and payment types quickly, safely, and easily. 

Broader impact: Expanding remittances and international education payments

The partnership also enhances outbound payments from China, enabling fast, secure, and transparent transfers to markets across Asia-Pacific, Europe, the Middle East, Africa, North America, and Latin America. This supports critical personal payment needs such as remittances and international education payments.

Approximately 700,000 Chinese students pursue their education overseas each year, and the increased connectivity provides families and students with more reliable foreign exchange management, streamlined paperwork, and quicker processing times.