Visa receives approval to prepare domestic card clearing in China

The People’s Bank of China approved Visa’s application to begin preparing a domestic bankcard clearing institution. Visa announced the decision on Oct. 13. It covers preparation rather than the start of operations.

Visa said it would take the next steps in accordance with the Chinese regulator’s requirements. Chief Executive Ryan McInerney said the company had participated in China’s payments system for more than 40 years.

Mastercard and American Express had previously received comparable approvals. The decision creates a path toward Visa’s domestic card payments business, but does not itself launch a new service for cardholders.

Visa had previously worked with Chinese banks on co-branded cards. In that model, UnionPay handles transactions within China and Visa processes them abroad.

In January, Visa also announced that cards issued in mainland China could be linked to Apple Pay for overseas use. That cross-border payment feature is separate from domestic clearing.