Visa Wins Preliminary PBoC Approval to Prepare Domestic Card Clearing in China
The People's Bank of China approved Visa's application to prepare a domestic bankcard clearing institution. Visa has a year to prepare before it can apply to start operating, and cannot yet issue renminbi Visa cards in China.
By Daniel Osei, Journalist, Payments and Cards
Visa said on October 13, 2026 that the People's Bank of China (PBoC) has approved its "Application to Prepare", allowing the company to begin formal preparations to establish a domestic bankcard clearing institution in China.
The approval is a preliminary step, not an operating licence. China Daily reported, citing the PBoC, that Visa's Chinese subsidiary must complete preparations within one year before applying to commence operations. A bankcard clearing business licence would be issued only after approval by the PBoC and the National Financial Regulatory Administration.
What changes, and what does not yet
Visa already provides cross-border clearing for foreign-currency bank cards in China. Until it obtains a licence, it cannot issue Visa-branded renminbi bank cards in China or provide RMB bankcard clearing services to domestic entities, according to China Daily.
Once domestic operations begin, Visa would be able to support clients in China issuing Visa-branded payment products accepted within the country, CEO Ryan McInerney told China Daily.
"The approval of our Application to Prepare marks a significant step forward in Visa's long-standing commitment to China," McInerney said in Visa's statement. "We look forward to taking the necessary steps in the process, pursuant to the PBOC's regulations, to begin operating domestically in China."
A market with three licensed clearers
China currently has three licensed bankcard clearing institutions: China UnionPay and the local entities of American Express and Mastercard, China Daily reported. Reuters noted that Mastercard received approval in 2023 to clear domestic yuan-denominated bankcard transactions through a joint venture with NetsUnion.
The PBoC said the approval was a further step in opening up financial services and implementing the outcomes of China-US economic and trade talks, according to China Daily.