Visa has secured approval from the People's Bank of China to begin the process of setting up a local bank card clearing business in the country.
The approval allows the U. S.
payments company to pursue domestic market operations after more than 40 years of working with Chinese banks.
Visa had applied with the People's Bank of China in May 2020 to operate a bank card clearing institution.
The company described the approval as an important milestone toward serving China's domestic payments market.
Visa said it will follow People's Bank of China regulations before beginning domestic operations.
Longstanding Presence and Leadership
Visa has operated in China through partnerships involving dual-branded cards, where China's UnionPay processes domestic transactions and Visa handles overseas payments.
Visa CEO Ryan McInerney said the company has been an active contributor to China's payments landscape for more than 40 years.
McInerney joined U. S.
President Donald Trump's business delegation to Beijing in May and became chair of the U. S.
-China Business Council in June.
He also led a trip to Beijing in early September.
McInerney said Visa looks forward to taking the necessary steps under PBOC regulations to begin operating domestically in China.
Analyst George Chen of The Asia Group said the timing of the approval was notable ahead of the APEC Leaders' Meeting in Shenzhen, where Xi Jinping and Donald Trump are expected to meet again.
China's financial sector has remained tightly controlled, with domestic companies favored and restrictions maintained on cross-border capital flows.
Mastercard and American Express have already received approvals to operate bank card clearing businesses in China in recent years.
Mobile payments dominate daily consumer transactions in China, mainly through Tencent's WeChat and Alibaba-affiliate Ant's Alipay.
