Key facts
- Visa received preliminary approval from the People's Bank of China to establish a bank card clearing institution.
- The approval allows Visa to begin preparations for a domestic bankcard clearing institution in China.
- Visa has one year to complete preparations before applying to begin operations.
Visa has received preliminary approval from China's central bank to start preparations for establishing a domestic bankcard clearing institution. The U.S. payments firm announced the development on Tuesday, marking a step towards expanding its operations within the Chinese market.
With a local clearing organization, Visa would be able to settle domestic yuan transactions. This approval signifies a move by Chinese regulators to allow foreign payment networks to operate more directly within the country, potentially increasing competition and choice for consumers and businesses.