Visa said it received approval from the People’s Bank of China (PBOC) to begin formal preparations for a domestic bankcard clearing institution in China. The approval advances the company’s long-running effort to enter the country’s large domestic payments market.
Visa has one year to complete preparations before it can apply for an operating license. If licensed, it could eventually settle domestic yuan transactions directly on its own network. The market has historically been dominated by state-owned China UnionPay.
Visa’s rivals American Express and Mastercard received approvals for their joint ventures in 2020 and 2023, respectively.