Visa wins China approval for bank card clearing business

Traders Union
All News
Financial News
Visa wins China bank card approval

Highlights

People’s Bank of China approved Visa to establish a bank card clearing business, enabling imminent domestic operations pending regulatory steps.
Visa's approval follows earlier PBOC clearances for Mastercard in 2020 and American Express in 2018–2020, highlighting ongoing market opening for foreign card networks.
Timing of Visa's approval coincides with upcoming U.S.-China leadership meetings, signaling Beijing’s intention to demonstrate progress for American businesses.

Regulatory approval and market entry steps

As reported by CNBC, citing Visa, the People’s Bank of China has approved the company to establish a bank card clearing business in the country, a move the company describes as a milestone toward serving China’s domestic payments market.

Visa says it now looks forward to taking the necessary steps under PBOC regulations before beginning domestic operations in China. Chief Executive Ryan McInerney says the company has been involved in China’s payments landscape for more than 40 years, while Visa had previously said it applied in May 2020 to operate a bank card clearing institution.

The company already works with Chinese banks on dual-branded cards, in which UnionPay handles domestic transactions and Visa processes overseas payments. In January, Visa says cards issued in mainland China can be linked to Apple Pay for use abroad.

Timing, competition and sector impact

The approval arrives as Washington and Beijing prepare for another high-level meeting, with the U.S. and Chinese presidents expected to meet again at the APEC Leaders’ Meeting in Shenzhen next month. George Chen, partner and chair of digital practice at The Asia Group, says the timing suggests Beijing wants to show concrete progress for American businesses before Donald Trump’s next visit to China.

Trump told Fox News after his Beijing trip in May that he raised Visa’s request for access to the China market. After the summit in September, China says it will approve applications from all foreign financial institutions to operate in the country.

Mainland China has long maintained tight control over its financial sector, favoring domestic players and limiting cross-border capital flows. Mobile payments dominate everyday consumer spending in China, led mainly by Tencent’s WeChat and Ant Group’s Alipay, while foreign card networks continue to expand gradually through regulatory approvals.

Visa’s latest clearance follows earlier moves involving U.S. rivals. Mastercard’s joint venture in China says it started processing payments in 2024 after receiving PBOC approval to begin bank card clearing preparations in February 2020, while American Express became the first foreign entrant after securing its processing license in June 2020 following an earlier PBOC nod in 2018.

Our earlier coverage examined how rising geopolitical scrutiny is pushing multinationals to adjust their China strategies, often using local ownership structures to reduce political and reputational exposure while staying in the market. Using Starbucks’ sale of a majority stake in its China business as an example, we noted that shifting control to a local partner can limit direct exposure to policy backlash, even though it does not eliminate risk entirely.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.