Last Updated on October 19, 2026 by TMB
Global payments giant Visa has been permitted to start preparations required to set up domestic card clearing services in China. The country’s central bank, the People’s Bank of China (PBOC), has permitted Visa to begin these preparations, a move that could allow Visa to compete in China’s payments market.
After receiving the ‘Application to Prepare’ authorization from the PBOC, Visa has one year to complete its local preparations before it can submit an application for a full license. The final license will allow Visa to begin clearing card payments.
Visa Received Approval Years After Mastercard and American Express
A Visa release called the approval a significant step forward that reflects the company’s commitment to China. Visa Chief Executive Officer Ryan McInerney also thanked the leaders of China and the United States for maintaining a stable relationship. The CEO added:
“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.”
Visa has now joined American Express and Mastercard, both of which run domestic card clearing services in China. American Express received its Application to Prepare authorization in November 2018 before receiving the clearing license in 2020. It began services via Express (Hangzhou) Technology Service, in partnership with LianLian Digitech. Mastercard’s card clearing business was approved in partnership with NetsUnion Clearing Corp in 2020, before local transactions officially kicked off in 2024.
According to reports, Visa’s delay, compared with American Express and Mastercard, stems from the company’s rumored preference for operating without a joint venture partner. While Mastercard and American Express use local partners, Visa hopes to maintain much greater control over its business in China.
Visa’s Approval Follows Meetings Between Trump and Jinping
A Visa annual report filed with the SEC for the fiscal year ended September 30, 2020, includes information about the company’s application for card clearing. While Visa did not specify in the filing, reports suggest it first applied in July 2017. No official reason for the delay has been provided. If it receives the final approval, Visa would have to struggle in a market dominated by state-owned UnionPay, as well as other giants like Tencent and Alibaba.
During Donald Trump’s first term as US president, both countries struck a trade deal that involved China quickening approvals for card companies in the US. The leaders of China and the US have met twice over the last few months, with Trump visiting Beijing in May and Xi Jinping meeting Trump in Washington last month.
In August, both Visa and Mastercard began international card transactions in Syria after Washington removed the country from its list of state sponsors of terrorism. Mastercard completed its first payment in Syria in partnership with the QNB Group in Qatar, while Visa completed its first transaction with Fransabank in Lebanon.
