US behemoth Visa has secured approval from the People’s Bank of China to set up a domestic bank card clearing business in the country.
Editorial
This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.
The green light sees Visa join Mastercard and American Express in securing greater access to the huge Chinese payments market.
The approval comes shortly after Visa CEO Ryan McInerney was part of the guest list at a White House dinner hosted by President Donald Trump for Chinese leader Xi Jinping. Trump has said that he raised Visa's access to China during his own visit to Beijing in May, which McInerney joined.
Says McInerney: "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."
He adds: “For more than 40 years, Visa has been an active contributor to China’s dynamic payments landscape. We look forward to taking the necessary steps in the process, pursuant to the PBOC’s regulations, to begin operating domestically in China.”
The entry of foreign card schemes into China's multi-trillion dollar payments market has been hard fought over the years. Back in June 2015, the country eased restrictions on overseas firms obtaining licences by setting up units or acquiring a local company.
In 2024, Mastercard finally began processing domestic payments in the country through a joint venture. Amex has a similar JV operation after receiving a processing license in 2020.