Visa Inc. has received approval from China's central bank to begin preparations for establishing a domestic bankcard clearing institution, marking a significant step toward entering the country's domestic payments market. According to reports from Investing.com, the People's Bank of China approved Visa's application to begin formal preparations for domestic operations. This approval positions Visa to potentially follow rivals Mastercard Inc. and American Express Co. in serving China's massive payments market, with the company stating this represents an 'important milestone' toward serving China's domestic payments market. As reported by Visa, the company announced on October 13, 2026 that it has received approval of its Application to Prepare from the People's Bank of China, which allows the company to begin formal preparations to establish a domestic bankcard clearing institution in China.
Visa CEO Ryan McInerney emphasized the company's long-term commitment to the Chinese market, stating that for more than 40 years, Visa has been an active contributor to China's dynamic payments landscape. As reported by Investing.com, McInerney noted that the approval marked a significant step in the company's long-standing commitment to China. The CEO stated that 'We look forward to taking the necessary steps in the process, pursuant to the PBOC's regulations, to begin operating domestically in China'. According to Visa, McInerney added that 'The approval of our Application to Prepare marks a significant step forward in Visa's long-standing commitment to China. We greatly appreciate the important role of the leaders of the United States and China in pursuing a constructive and strategically stable relationship between the world's largest economies'. The approval does not mean Visa has begun clearing domestic transactions in China, as this represents only the preparatory phase subject to regulatory requirements.
China represents one of the world's largest digital payments markets, but domestic transactions are currently dominated by local payment networks and platforms. According to Investing.com, approval to establish a domestic clearing institution could give Visa a route to expand its presence beyond international card payments, subject to regulatory requirements. The approval follows a pattern of similar approvals for international payment companies in China, with competitor Mastercard receiving approval to establish its bank card clearing business in 2020, while Amex's joint venture in the country was approved to start bank card clearing services several months after that. As reported by Visa, China is one of the world's most advanced and dynamic digital payments markets, supported by a highly innovative ecosystem and continued commitment to further financial sector liberalization. This regulatory framework has now opened the path for Visa to establish its domestic operations in the Chinese market.
The approval process gained additional attention due to recent diplomatic developments. As reported by Business Standard, earlier this year, US President Donald Trump said he brought up Visa's request for access to mainland China's market during a meeting with Xi Jinping in Beijing. Visa's CEO McInerney accompanied Trump on that May trip to China, highlighting the political significance of the approval process and the potential role of diplomatic engagement in facilitating international business operations in China. The approval represents a significant development in the ongoing relationship between the world's largest economies, with McInerney noting the 'important role of the leaders of the United States and China in pursuing a constructive and strategically stable relationship between the world's largest economies'. The approval represents a significant development in the ongoing relationship between the world's largest economies.
