[First in history] American Express enters China's LianLian! What is the relationship with Ripple?

It was revealed on November 9 that American Express, a major U.S. credit card company, received approval from China’s central bank to enable credit card payments within China.

American Express Co (AXP.N) aimed to gain direct access to become the world's largest banking card market by approving card payments in China.

Quotation:REUTERS

This report comes from Reuters, but according to the coverage, Amex will use the network of a domestic payment giant in China,LianLianto perform transactions.

Amex’s China Expansion Aim【Relation to the Chinese E-commerce Market】

According to Reuters, Amex will utilize the network of the major Chinese payments company LianLian to build a domestic settlement system in yuan (YYuan).

Two possible reasons for Amex’s entry into China are considered as follows.

• Expansion of the E-commerce (EC) market
• Forecast that 10 billion credit cards will be used by 2020

The development of the EC market in China is remarkable, andiReserchsummarizes the growth rate and total market size of the Chinese EC market as follows.

Major Chinese EC sites are Alibaba Group and JD.com, which together account for more than 80% of the Chinese EC market.

Andthe background for Amex’s entry into Chinaconsists of the following three points.

• Reasons for EC market expansion and growing demand for credit cards
• Amex’s aims and its relationship with Ripple
• Benefits of Ripple

Now, let’s look at these one by one.

Reasons for EC Market Expansion and Growing Credit Card Demand

There are two reasons the Chinese EC market has expanded.

First is the “development and popularization of digital payments.”

China’s digital payment adoption (cashless society) is among the top in the world, and cash is rarely used in everyday transactions.

As digital payments have progressed, paying for internet transactions without cash has greatly improved convenience, which in turn helped attract more Chinese consumers to EC sites.

And another factor is the increasing proportion of middle-to-upper class in China’s population.Middle and upper-income population growth.

In other words, as more Chinese people become wealthy, their consumption increases as well.

China’s industry continues to develop, and its economic growth rate has remained among the world's highest over the past decade, with expectations that this momentum will continue.

And as China develops, domestic consumption rises, which in turn keeps expanding the EC market.

If the EC market keeps expanding, demand for credit cards will also increase accordingly.

Amex’s Aims and Ripple’s Relationship

From the reasons mentioned above...More details below ⇩

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