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Visa has secured approval from the People’s Bank of China (PBOC) to establish a domestic bank card clearing business, marking a significant step towards expanding its presence in one of the world’s largest payments markets.
The approval places Visa alongside Mastercard and American Express in gaining greater access to China’s multi-trillion-dollar payments sector, where foreign card networks have faced regulatory and operational barriers for years.
The development follows a period of high-level engagement between US and Chinese leaders. Visa CEO Ryan McInerney attended a White House dinner hosted by President Donald Trump for Chinese President Xi Jinping. Trump has also said he raised Visa’s access to the Chinese market during his visit to Beijing in May, which McInerney joined.
Visa signals commitment to China’s payments market
Commenting on the approval, McInerney acknowledged the role of diplomatic engagement in supporting commercial relations between the two countries.
“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 said.
He added that Visa had contributed to China’s payments landscape for more than four decades and was prepared to proceed in line with the country’s regulatory requirements.
“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,” McInerney said.
The approval represents progress towards a more direct role for Visa in domestic card clearing, although the company will still need to complete the necessary steps under the PBOC’s regulatory framework before commencing operations.
Foreign card networks make gradual inroads
Foreign payment networks have spent years seeking access to China’s domestic bank card clearing market, which has historically been dominated by local operator China UnionPay.
In June 2015, China eased restrictions on overseas firms seeking licences to operate domestic bank card clearing businesses, allowing eligible companies to establish local entities or acquire existing businesses.
However, regulatory approval and the establishment of suitable local operating structures have remained important hurdles for international card schemes seeking to compete in the market.
Mastercard began processing domestic payments in China in 2024 through a joint venture, marking a major milestone in its expansion strategy. American Express also operates in the country through a joint venture after receiving a domestic bank card clearing licence in 2020.
Visa’s approval adds another major international network to the group seeking a greater role in China’s domestic payments infrastructure.
Implications for payments competition
Visa’s proposed entry could contribute to greater competition in China’s card payments sector, although the extent of its impact will depend on the scope of its eventual operations and the conditions attached to its licence.
For international payment networks, access to domestic clearing infrastructure can create opportunities to expand merchant acceptance, develop local partnerships and compete for transaction volumes in a large consumer and business market.
The development also highlights the importance of regulatory frameworks in determining how global payment providers participate in national financial infrastructure. Even established international networks must meet local licensing, operational and compliance requirements before they can process domestic transactions.
As Visa advances towards domestic operations, its progress will be closely watched by the payments industry for what it could mean for market competition, cross-border payment connectivity and the evolving relationship between global card networks and China’s financial system.
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