Visa has received approval from China’s central bank to launch a bank card clearing business in the country, marking a major milestone after over 40 years of operations. The People’s Bank of China (PBOC) granted the license, allowing Visa to expand into China’s domestic payments market. Visa CEO Ryan McInerney called it an important step, emphasizing the company’s long-standing role in China’s payments landscape.
The approval comes as U.S. President Donald Trump and Chinese President Xi Jinping prepare for their third meeting this year. Analysts suggest the timing aligns with Beijing’s efforts to show progress for American businesses ahead of the APEC Leaders' Meeting in Shenzhen. Trump had previously raised Visa’s market access during a visit to China in May.
China has historically restricted foreign financial institutions, favoring domestic players like UnionPay. Visa has previously partnered with Chinese banks for dual-branded cards, with UnionPay handling domestic transactions. Competitors like Mastercard and American Express have also received approvals to operate in China, with Mastercard’s joint venture beginning payments processing in 2024.
Despite the approval, mobile payment platforms like WeChat Pay and Alipay dominate daily consumer transactions in China. Visa’s entry into the market signifies a shift in China’s financial sector policies, opening doors for greater foreign participation.