Visa gets approval to prepare for domestic business in China

On October 13, Visa, the US payments firm, received approval from China's central bank to begin preparations for establishing a domestic bankcard clearing institution, the company announced on Tuesday. This development follows the US President Donald Trump's summit with Chinese leader Xi Jinping earlier this year, where over a dozen CEOs of prominent US companies, including payment giants Mastercard and Visa, participated.

Visa aimed to enter the Chinese market with a 100% ownership stake in a joint venture license, similar to its competitors Mastercard and American Express, according to sources cited by Reuters. During his meeting with Trump in May, Trump had reportedly urged Chinese officials to grant Visa broader access to China's credit card market.

China had opened its market to foreign bank companies in 2016, but required foreign service providers to establish technology and data infrastructure and backup data systems within the country. In 2023, Mastercard secured approval to process domestic yuan-denominated bankcard transactions through a joint venture with NetsUnion. Visa's CEO Ryan McInerney stated that the approval of their "Application to Prepare" marks a significant milestone in the company's enduring commitment to China.