Visa Cleared to Build Card Operations in China

Key Moments

Regulatory Green Light for Visa’s China Push

US payments company Visa has obtained authorization from China’s central bank to begin laying the groundwork for a domestic bank card clearing institution, bringing to a close years of delay in accessing one of the world’s largest payments markets.

The decision is a significant milestone in Visa’s effort to operate bank card clearing services in China alongside American Express and Mastercard, and reflects continued incremental opening of China’s closely managed financial sector.

According to information posted on the People’s Bank of China (PBOC) website, the central bank granted administrative approval to Visa Information Technology (Beijing) Co Ltd, allowing the entity to commence preparatory work for a bank card clearing business.

Visa Information Technology (Beijing) is a foreign-invested company that Visa has established within China.

Visa’s Statement and Political Backdrop

Visa CEO Ryan McInerney welcomed the regulatory move, stating on Tuesday: “The approval of our Application to Prepare marks a significant step forward in Visa’s long-standing commitment to China.”

The approval follows a summit in China earlier this year between US President Donald Trump and Chinese leader Xi Jinping, which included participation by more than a dozen chief executives of leading US corporations, among them the heads of Mastercard and Visa.

McInerney added: “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.”

Next Steps and Licensing Process

The PBOC stated that Visa must finish its preparatory work within a one-year window. Once that phase is completed, the firm can file an application to formally start operations in China’s bank card clearing market.

The central bank noted that it will assess the subsequent application together with the country’s top banking regulator. If the review is successful, the authorities will grant a bank card clearing business license.

Strategic Implications and Market Access

Sources previously told Reuters that Visa had been aiming to enter the Chinese market – which is currently dominated by state-controlled China UnionPay – with a 100% ownership position in a future joint venture license.

George Chen, partner and chair of digital practice at The Asia Group, commented on the approval, saying: “This should be viewed as a goodwill gesture from Beijing towards Washington ahead of the next meeting between Presidents Xi Jinping and Donald Trump.” He noted that the two leaders are expected to meet again on the sidelines of the APEC Economic Leaders’ Meeting in Shenzhen in November.

Chen added that expanded access to China’s financial services sector has remained a key objective for Washington, which he said has repeatedly pressed Beijing to create a more open and equitable environment for foreign financial institutions operating in the country.

Visa’s Peers: Mastercard and American Express

Mastercard, in collaboration with local clearinghouse NetsUnion Clearing Corp, obtained approval in 2020 to begin preparations for setting up its bank card clearing operations in China.

American Express had its joint venture in China approved to commence bank card clearing services later the same year.

Scale of China’s Bank Card Market

Data from the PBOC highlights the size of the opportunity for global card networks. In China, bank cards processed 4.6 trillion transactions with a total value of 963.60 trillion yuan ($143.92 trillion) in 2025.