Visa has received preliminary approval from the People's Bank of China to begin preparations for establishing a domestic bank card clearing institution, marking a significant step in the US payment company's efforts to expand its presence in China's financial services market.
The approval allows Visa Information Technology (Beijing) Co., Ltd., a wholly foreign-owned entity, to undertake the preparatory work required to establish domestic card clearing operations. The company has been given one year to complete the process before submitting a separate application for final authorization.
The development could eventually enable Visa to process transactions between cards issued by Chinese banks and domestic merchants, expanding its activities beyond international and cross-border card payments.
China represents one of the world's largest payment markets, with approximately 4.6 trillion bank card transactions valued at 963.6 trillion yuan recorded in 2025.
The market has historically been dominated by China UnionPay, although international payment networks have gradually gained greater access following regulatory reforms. American Express and Mastercard have already established domestic clearing operations in China.
Visa's approval reflects continuing efforts by Chinese authorities to open parts of the country's financial sector to foreign institutions, while increasing competition within domestic payment services.
The company must still satisfy regulatory requirements and obtain a final operating licence before launching domestic clearing services. The preparatory approval does not authorize Visa to begin processing local transactions immediately.
