The People’s Bank of China granted Visa (NYSE: V) approval to begin formal preparations for a bank card clearing institution through its local subsidiary, Visa Information Technology (Beijing) Co. Ltd.
The decision allows the U.S. payments company to advance toward handling renminbi-denominated card transactions inside China on its own network, marking a long-sought expansion after more than four decades of activity in the country limited mainly to foreign-currency and cross-border services.
Under the terms set by the central bank, Visa’s Beijing entity has one year to complete the necessary preparatory work.
Once that stage finishes, the company may apply to commence full operations.
A final bank card clearing business license would then require joint approval from the People’s Bank of China and the National Financial Regulatory Administration.
Until that license is issued, Visa remains unable to issue Visa-branded renminbi cards for domestic use or to provide renminbi clearing services to Chinese institutions.
Historically, domestic bank card clearing has been dominated by the state-backed China UnionPay, while international networks handled foreign-currency payments on multicurrency cards.
Visa Chief Executive Officer Ryan McInerney described the approval as a significant advance in the company’s long-standing commitment to China.
He noted that Visa has contributed to the country’s payments environment for more than 40 years and expressed appreciation for the role of leaders from the United States and China in supporting a constructive relationship between the two large economies.
The company stated it looks forward to completing the remaining regulatory steps and eventually bringing its technology, security standards, and reliability to Chinese consumers and businesses.
Visa also characterized China as one of the world’s most advanced digital payments markets, supported by a highly innovative ecosystem and ongoing efforts to liberalize the financial sector.
The approval comes after years of applications and reviews.
Reports indicate Visa submitted materials as early as 2017, with a further application in May 2020.
The company previously operated through dual-branded cards issued with Chinese banks, under which UnionPay processed transactions inside China and Visa handled those made abroad.
This preparatory green light positions Visa as the third major international card network to gain a pathway into China’s domestic clearing market, following American Express and Mastercard.
Unlike those rivals, which entered through joint ventures with Chinese partners, Visa is pursuing a wholly foreign-owned structure.
American Express received its processing authorization in 2020, while Mastercard’s joint venture began processing domestic payments in 2024.
China opened the bank card clearing sector to foreign participants beginning in 2015, ending UnionPay’s earlier monopoly.
Even with eventual operational approval, Visa would face a highly competitive environment in which mobile wallets such as Alipay and WeChat Pay already handle a large share of everyday payments, alongside UnionPay’s extensive card infrastructure.
By the end of 2025, major global brands accounted for more than 19 billion bank cards in circulation worldwide, underscoring the scale of the broader market Visa hopes to serve more fully.
The move is widely viewed as another step in China’s gradual opening of financial services and as consistent with earlier China-US economic and trade understandings that called for progress on foreign card network approvals. McInerney, who chairs the US-China Business Council, met with People’s Bank of China Governor Pan Gongsheng in May 2026 during a business delegation visit.
Observers note that the timing also coincides with continued high-level bilateral engagement.
Once fully licensed and operational, the new entity would enable Visa to clear domestic renminbi transactions directly and support the issuance of yuan-denominated Visa cards accepted within China. That capability would expand the company’s role beyond its longstanding cross-border focus and add another licensed clearing participant alongside UnionPay and the local entities of American Express and Mastercard.