Singapore – Visa has received approval from the People’s Bank of China (PBOC) to begin formal preparations to establish a domestic bankcard clearing institution in China, the company announced on 13 October.
The approval covers Visa’s Application to Prepare, according to the payments company. It allows Visa to start the formal groundwork for serving China’s domestic payments market.
Visa described the decision as an important milestone toward that goal. However, the company has yet to complete the process or begin domestic bankcard clearing operations.
Chief Executive Officer Ryan McInerney linked the approval to the company’s history in the country.
“The approval of our Application to Prepare marks a significant step forward in Visa’s long-standing commitment to China. We greatly appreciate the important role of the leaders of the United States and China in pursuing a constructive and strategically stable relationship between the world’s largest economies,” said McInerney.
“For more than 40 years, Visa has been an active contributor to China’s dynamic payments landscape. We look forward to taking the necessary steps in the process, pursuant to the PBOC’s regulations, to begin operating domestically in China,” Mclnerney added.
Beyond the approval itself, Visa pointed to the scale of the market it hopes to enter. The company said China is one of the world’s most advanced and dynamic digital payments markets, supported by an innovative ecosystem and a continued commitment to further financial sector liberalisation.
Visa added that it aims to contribute to the continued development of China’s domestic payments landscape, offering innovation, security and reliability to Chinese consumers and businesses.
Looking ahead, the company said it will continue its efforts to complete the process and begin domestic bankcard clearing operations. Visa did not provide a timeline in its announcement.
