Visa advances China payments market entry

• Visa (NYSE:V) received approval from the People’s Bank of China to begin preparations for establishing a domestic bankcard clearing institution in China.
• The approval allows Visa to start the formal preparation process but does not yet represent the start of domestic bankcard clearing operations.
• Visa said the step supports its efforts to participate in China’s domestic payments market following completion of required regulatory procedures.

Visa (NYSE:V) announced that it received approval for its Application to Prepare from the People’s Bank of China (PBOC), allowing the company to begin formal preparations for establishing a domestic bankcard clearing institution.

The approval represents a regulatory milestone as Visa works toward entering China’s domestic payments market, subject to completing additional requirements under PBOC regulations.

“The approval of our Application to Prepare marks a significant step forward in Visa’s long-standing commitment to China,” said Ryan McInerney, chief executive officer of Visa.

Visa said it plans to continue the process required to begin domestic bankcard clearing operations and expects to bring its payment technology, security systems, and infrastructure capabilities to Chinese consumers and businesses.

China has one of the world’s largest digital payments markets, and Visa said its planned operations would focus on contributing to the continued development of the country’s domestic payments ecosystem.

Visa operates a global digital payments network connecting consumers, businesses, financial institutions, and governments across international markets.