Visa has secured a long-awaited regulatory breakthrough in China, winning approval to prepare a local clearing operation for bank cards after more than 40 years of engagement with the country.
The decision moves the US payments group closer to competing in one of the world’s largest payment markets, but it does not yet authorise it to begin operations.
The People’s Bank of China (PBOC) on Tuesday approved an application by Visa Information Technology (Beijing) Co Ltd, a foreign-invested enterprise established by Visa, to start formal preparations for a locally registered clearing institution.
The company has one year to complete the preparatory work and can then apply for an operating licence. The central bank and China’s banking regulator will review that application before any launch, Reuters reported.
Visa’s chief executive, Ryan McInerney, called the approval “a significant step forward in Visa’s long-standing commitment to China.” The approval marks a gateway to licensing, not permission to launch.
The approval could allow Visa to clear domestic transactions in renminbi through its network and support the issuance of yuan-denominated Visa cards.
Until now, international card networks have generally had a more limited role in China’s domestic market, where China UnionPay has held a dominant position in bank card clearing. Foreign networks have been able to serve overseas cardholders and process eligible international transactions, but access to domestic clearing has remained tightly regulated.
The scale of the opportunity is substantial. Bank cards processed 4.6 trillion transactions worth 963.6 trillion yuan (USD 143.9 trillion) in China in 2025, according to central bank data cited by Reuters.
The country had issued 10.27 billion bank cards by the end of the second quarter of 2026, including 677 million credit cards and debit-credit combination cards, the Wall Street Journal reported. Those figures underline the potential reach of the market, although they do not indicate how much business Visa could win.
The regulatory milestone also brings Visa closer to rivals Mastercard and American Express, which have already obtained permission to operate domestic clearing businesses in China. American Express received approval in 2020 through a joint venture with Chinese partner LianLian, while Mastercard’s route involved NetsUnion Clearing Corporation, a domestic clearing company backed by Chinese institutions.
Mastercard secured approval to prepare its business in 2020 and later received authorisation to proceed, according to news reports.
For years, Visa has sought entry, but regulatory barriers and a market structure that favours domestic providers have slowed its progress.
A 2012 World Trade Organization ruling backed a US complaint over China’s restrictions on foreign electronic payment services.
Commitments made during US-China trade negotiations subsequently created a path for foreign card networks to apply for domestic licences.
Even with approval to prepare, Visa will enter a market that has changed dramatically during its long wait. China UnionPay remains central to bank card infrastructure, while Alipay, operated by Ant Group, and Tencent’s WeChat Pay have made mobile payments routine for consumers and merchants. QR-code payments are widely embedded in everyday transactions, from retail purchases to transport and street stalls.
Its likely opportunity may include international businesses operating in China, domestic merchants seeking links to global payment systems, and Chinese consumers who want cards usable at home and abroad.
But the commercial model will depend on the licence conditions, relationships with local banks, card issuance, merchant acceptance and the extent to which consumers continue to favour mobile wallets. Visa has not announced a launch date or disclosed a detailed operating plan.
The ownership structure could be significant. Reuters reported that Visa had sought the possibility of operating through a wholly owned entity, rather than a joint venture, which would give it greater control over its China business.
Whether the final licence permits that structure and what conditions accompany it will be important tests of Beijing’s approach to opening its financial sector. The preliminary approval alone does not settle those questions.
The timing has also drawn attention. The decision follows high-level engagement between US President Donald Trump and Chinese President Xi Jinping, including a meeting in Beijing earlier this year and subsequent discussions in Washington. Visa’s McInerney was among the US corporate executives involved in the Beijing visit.
The two leaders are expected to meet again on the sidelines of the Asia-Pacific Economic Cooperation summit in Shenzhen in November, according to Reuters.
Some analysts see the clearance as a goodwill gesture towards Washington ahead of that meeting, as both governments seek to stabilise a relationship strained by tariffs, technology restrictions and disputes over market access.
The move may signal that Beijing is prepared to deliver progress on a long-running issue for US financial firms. It remains uncertain, however, whether the approval reflects a broader shift in policy or a carefully bounded decision specific to Visa.
For Visa, the immediate task is procedural: complete the preparations, satisfy regulators and secure a final licence. The larger challenge will be commercial. Approval opens a door that has remained shut for years, but it does not guarantee a meaningful share of China’s payments activity.
In a market where domestic card infrastructure and mobile wallets are deeply established, Visa’s long-awaited entry will depend on how effectively it can translate regulatory access into everyday use.