Visa wins China approval to prepare for domestic payments business

Visa Inc. received approval from China's central bank to begin preparations for establishing a domestic bankcard clearing institution, according to a Tuesday announcement. The move marks a significant step in the company's long-standing commitment to China, where it has been active for over 40 years. However, the approval does not imply Visa has already started clearing domestic transactions in China.

Ryan McInerney, Visa's CEO, expressed the company's intention to proceed with the necessary steps in line with the People's Bank of China's regulations to commence operations domestically in the country. China's domestic payments market is among the world's largest, but is currently dominated by local payment networks and platforms.

The approval could potentially provide Visa with a pathway to expand its presence beyond international card payments, subject to regulatory considerations. Visa's network currently spans over 200 countries and territories globally.