The People’s Bank of China approved Visa’s request to prepare for domestic clearing operations, allowing the firm to begin formal setup steps for future processing.
Key points
- Visa received approval to prepare for domestic card clearing in China.
- The People’s Bank of China granted the status on Tuesday.
- Visa does not yet have permission to process domestic payments.
Visa announced on Tuesday that it received approval to prepare for a domestic card clearing business in China. The People’s Bank of China granted the request, allowing the company to begin formal setup steps for future operations.
What happened
The People’s Bank of China approved Visa’s “Application to Prepare” on Tuesday, according to The Next Web. This regulatory step allows the payment network to begin formal preparations for a domestic clearing business. Visa does not yet have permission to process domestic payments within the country.
Visa first submitted its application to the central bank in May 2020, as reported by CNBC. The company has not provided a specific date for when it expects to start operating domestically. Chief Executive Ryan McInerney stated that the company looks forward to taking necessary steps pursuant to regulations.
McInerney joined President Donald Trump’s business delegation to Beijing in May, according to Evelyn Cheng at CNBC. He became chair of the US-China Business Council in June and led a trip to Beijing in early September. Trump told Fox News he raised Visa’s market access request during the May visit.
Why it matters
China has maintained tight control over its financial sector and favored domestic players for years. American Express received approval in 2018 and a processing license in June 2020. Mastercard’s joint venture got preparation approval in February 2020 and started processing payments in 2024.
Until now, Visa has worked with Chinese banks on dual-branded cards. China’s UnionPay processes these transactions domestically, while Visa handles payments made abroad. Most everyday consumer payments in China run through mobile apps like Tencent’s WeChat and Ant Group’s Alipay.
George Chen, a partner at The Asia Group, told CNBC the approval coincides with the upcoming APEC meeting. He suggested Beijing wants to demonstrate tangible progress for American businesses before President Trump’s next visit. The two governments have also opened talks on technology and AI misuse prevention.
The fix
- Monitor official regulatory announcements for operational start dates.
- Review partnership structures with local clearing houses.
- Track competitor licensing progress in restricted markets.
- Assess compliance requirements for foreign financial entities.
What to do and how to stay safe: Visa
- Check official regulatory filings for changes in market access.
- Monitor competitor activities in international financial sectors.
- Review compliance requirements for cross-border payment systems.
- Watch for updates on bilateral trade agreements affecting tech firms.
Step-by-step guide: What is password policies and how they protect systems
General security guidance from the Crypt Weekly newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
Can Visa process payments in China now?
No, the approval only allows Visa to prepare for domestic clearing operations, not to process payments yet.
When did Visa apply for this approval?
Visa first applied to the People’s Bank of China in May 2020, according to CNBC reports.
Who else has approval in China?
American Express and Mastercard’s joint venture have received approvals for domestic operations.
