US payments company Visa has received approval from China’s central bank to begin preparations for a domestic bank card clearing business, bringing it closer to entering one of the world’s largest payments markets.
The People’s Bank of China approved an application by Visa Information Technology (Beijing) Co Ltd, a company established in China by Visa, allowing it to begin the preparatory work required to establish a local clearing institution.
The company must complete the preparations within one year before applying for a licence to begin operations. The central bank and China’s banking regulator will review the application before making a final decision.
The approval marks an important step in Visa’s long-running effort to expand its presence in China, where domestic card payments have traditionally been dominated by state-controlled China UnionPay.
Visa’s entry would place it alongside international competitors Mastercard and American Express, which have already established domestic card-clearing operations in the country.
China’s payments market offers substantial commercial opportunities. Bank cards processed approximately 4.6 trillion transactions worth 963.60 trillion yuan, equivalent to about $143.92 trillion, in 2025.
The decision also comes amid efforts by Washington and Beijing to improve economic relations. Greater access to China’s financial services sector has been a longstanding priority for US businesses.
However, Visa must still secure a final operating licence before it can begin domestic clearing services.
Leave a comment