Global bank card operators including Visa and MasterCard can seek licences to clear domestic Chinese payments starting today, following a long-running effort to penetrate a market dominated by a state-backed incumbent.

The biggest share price gains for Visa and MasterCard over the past year have come in response to Chinese government policies that open the local payment card market to foreign players.

In late October, China’s cabinet announced it would allow foreign companies to access the market. The government followed up in April with rules that take effect today.

Previously, all renminbi payments had to be cleared through China UnionPay, a network created by the central bank and owned by 85 mostly state-owned banks. But in 2012 the World Trade Organisation ruled China unfairly discriminated against foreign payment processors, handing a victory to the US, which brought the complaint.

Industry experts say foreign players will struggle to win market share from UnionPay.

– Copyright The Financial Times Limited 2015