Visa Secures Chinese Central Bank Nod to Prepare Domestic Card-Clearing Business

The People's Bank of China has given Visa administrative approval to begin preparatory work for a domestic bank card clearing institution, Visa and Reuters reported on Oct. 13, 2026. The approval went to Visa Information Technology (Beijing) Co Ltd, a foreign-invested entity Visa set up in China. It is not an operating license, and Visa cannot yet clear domestic card transactions.

Visa has one year to finish its preparations, after which it can apply to open for business. The central bank and the national banking regulator would review that application and, if approved, issue a bank card clearing business license. Visa has not disclosed a launch timeline. Sources told Reuters the company had hoped for a 100% ownership stake in a future joint venture license, which would be unprecedented, though final terms were not confirmed. CEO Ryan McInerney called the approval "a significant step forward in Visa's long-standing commitment to China," where Visa has operated for more than 40 years.

The step has been a long time coming. Visa first applied to the central bank in 2017. Rivals moved earlier: Mastercard won approval to prepare its clearing business in 2020, partnering with NetsUnion Clearing Corp, and an American Express joint venture was cleared to begin bank card clearing later in 2020. The market is large and concentrated: China's bank cards processed 4.6 trillion transactions worth 963.60 trillion yuan in 2025, and state-controlled China UnionPay dominates.

The approval follows a summit earlier in 2026 between Presidents Trump and Xi that included the heads of Visa and Mastercard. George Chen of The Asia Group called it a goodwill gesture from Beijing toward Washington ahead of the next expected meeting at the APEC leaders' gathering in Shenzhen in November. Investors may watch whether Visa completes preparations within the one-year window, what ownership structure it is allowed, and how a licensed Visa entity competes with UnionPay and the two earlier entrants.