Visa Secures China's Approval for Domestic Card Clearing Business
Visa has won approval from China's central bank, the People’s Bank of China, to start preparing a domestic bank card clearing business in the country, as per a company statement on Tuesday. This move comes six years after Visa first applied, joining Mastercard and American Express who already have approval.
"We look forward to taking the necessary steps... to begin operating domestically in China," said Visa CEO Ryan McInerney.
The approval comes ahead of the APEC leaders’ meeting in Shenzhen next month, where US President Trump and Chinese President Xi are expected to meet. George Chen from The Asia Group notes, "The move suggests that Beijing is keen to demonstrate tangible progress for American businesses before Trump’s next visit to China."
Visa's rivals, Mastercard and American Express, have already established a presence. American Express received approval in 2018, followed by Mastercard's joint venture in 2020.
Until now, Visa has partnered with Chinese banks for dual-branded cards, with UnionPay processing domestic transactions and Visa handling international ones. However, with this approval, Visa can now begin its formal preparations to process domestic payments in China.