By Eveline Danubrata
MANILA (Reuters) - Global payment operator MasterCard Inc (N:MA) sees double-digit annual growth in credit card transaction volumes in China, lifted by the booming e-commerce industry in the world's second-largest economy, a senior executive told Reuters on Monday.
China's plan to open up its domestic transactions market to foreign companies such as MasterCard would be a "game-changer", Ling Hai, co-president for Asia Pacific, said in an interview on the sidelines of the Asia-Pacific Economic Cooperation summit.
MasterCard's current business in China is mostly handling cross-border transactions when international travelers come to China or when Chinese cardholders go overseas. The domestic market has long been dominated by state-backed China UnionPay.
"That's going to change with China opening up. We will be able to process domestic transactions just like a domestic national player," Ling Hai said, adding that the timeline for this move remains unclear.
"If you truly gain full access and get it right, China is a game-changer," he said. "China is the future in terms of consumer market. It will contribute a great deal in terms of spending and volume."
Underscoring the potential of China's consumers, Alibaba Group Holding Ltd's (N:BABA) total value of goods transacted during its Singles' Day shopping festival reached 91.2 billion yuan ($14.32 billion).
MasterCard has already processed "millions" of transactions for Alibaba and Chinese online payment service Tenpay in the cross-border space, Ling Hai said. "The development of e-commerce is our best friend," he added.