Visa Gains China Approval for Local Bank Card Clearing Business

Visa received approval from China's People's Bank of China to begin the process of establishing a local bank card clearing business, allowing the U.S. payments company to move toward serving China's domestic payments market after decades of cooperation with Chinese banks.

The approval enables Visa to take steps required under People's Bank of China regulations before starting domestic operations, according to the company. Visa previously applied for permission to operate a bank card clearing institution in China in May 2020.

Visa said the authorization represents progress toward entering China's domestic payments sector, where foreign companies have faced restrictions and domestic providers have traditionally dominated.

"This marks an important milestone toward the company serving China's domestic payments market," said Visa in a statement.

Visa CEO Ryan McInerney described the approval as part of the company's long relationship with China's payments industry.

"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," said Ryan McInerney, Visa CEO.

McInerney joined U.S. President Donald Trump's business delegation to Beijing in May and later became chair of the U.S.-China Business Council in June. He also led a trip to Beijing in early September.

George Chen, partner and chair of digital practice at The Asia Group, discussed the timing of the approval ahead of upcoming diplomatic activity between the United States and China.

"The timing is notable," said George Chen, partner and chair of digital practice at The Asia Group.

Chen linked the decision to broader efforts to show progress for American companies operating in China before the next expected meeting between Xi Jinping and Donald Trump at the APEC Leaders' Meeting in Shenzhen.

"Beijing chose to approve visa's license just ahead of the APEC Leaders' Meeting in Shenzhen next month, where Xi [Jinping] and Trump are expected to meet again. The move suggests that Beijing is keen to demonstrate tangible progress for American businesses before Trump's next visit to China," said George Chen, partner and chair of digital practice at The Asia Group.

China has maintained strict controls over its financial sector, including limits on cross-border capital flows. Visa has operated in the country through partnerships involving dual-branded cards, with China's UnionPay handling domestic transactions and Visa processing overseas payments.

Mastercard and American Express have already received similar approvals in recent years. Mastercard's China joint venture began processing payments in 2024 after receiving approval to start bank card clearing preparations in February 2020, while mobile payments from Tencent's WeChat and Alibaba-affiliate Ant's Alipay remain central to daily consumer transactions in China.