BEIJING, Oct. 13 (Xinhua) -- China's central bank announced on Tuesday that it has approved an application from a subsidiary of U.S. payment giant Visa to set up a bank card clearing institution in China, a step forward in the country's financial opening up.
Visa Information Technology (Beijing) Co. Ltd. is required to complete its preparations within a year, after which it can apply to commence operations, the People's Bank of China (PBOC) said.
The bank card clearing business license will be issued after the PBOC and the National Financial Regulatory Administration jointly approve the application.
China's approval for Visa's preparation application is another positive measure in the country's opening up of the financial sector, reflecting its firm determination and confidence in advancing high-standard opening up, said Zhou Zhen, an associate professor at Tsinghua University's PBC School of Finance.
Zhou added that bank card clearing institutions play a fundamental role in the payment system as they connect card issuers and acquirers, and extend payment networks to cardholders and merchants.
Globally, bank cards remain one of the mainstream non-cash payment tools. By the end of 2025, the number of bank cards in circulation under major global brands exceeded 19 billion.
"The approval of our Application to Prepare marks a significant step forward in Visa's long-standing commitment to China," said Ryan McInerney, CEO of Visa. "For more than 40 years, Visa has been an active contributor to China's dynamic payments landscape."
"China is one of the world's most advanced and dynamic digital payments markets, supported by a highly innovative ecosystem and continued commitment to further financial sector liberalization," said Visa in a statement after the approval on Tuesday.
Under current regulations, once it is approved to commence operations, Visa will be able to provide clearing services and issue bank cards denominated in renminbi (RMB). The company is currently permitted to provide such services in China only in foreign currencies.
PBOC Governor Pan Gongsheng met with McInerney on May 15 this year. They exchanged views on issues including China-U.S. economic and trade relations, and Visa's development in China.
China's approval for Visa comes after greenlighting U.S. payment giants American Express and Mastercard to process domestic RMB-denominated transactions in recent years.
American Express secured approval in 2018 to establish a bank card clearing institution through its Chinese joint venture, Express (Hangzhou) Technology Service Co., which launched operations in 2020, becoming China's first foreign-funded bank card clearing institution. Mastercard likewise secured approval in 2020 and started operations in 2024.
The entry of major global bank card clearing institutions into the Chinese market is conducive to promoting diversified and multi-tiered development of China's bank card clearing market, enriching domestic payment services and building a more complete and efficient payment service system, Zhou said. ■
