Visa Wins Approval to Prepare a Bank Card Clearing Business in China
Visa can now begin formal preparations to clear domestic yuan transactions directly through its own network, with one year to complete the process, the PBOC said.
- On Tuesday, the People's Bank of China approved Visa's application to establish a locally registered bank card clearing organization, allowing the company to begin formal preparations for serving China's domestic payments market.
- Recent trade negotiations resulted in "a consensus in principle" regarding financial services, according to China's Ministry of Commerce, including approving applications from American financial institutions to establish local Chinese branches.
- Visa CEO Ryan McInerney called the approval "a significant step forward in Visa's long-standing commitment to China," noting the company has been an active contributor to the nation's payments landscape for more than 40 years.
- The PBOC granted Visa one year to complete business preparations, after which the company will settle domestic yuan transactions directly through its own network.
- Historically, domestic transactions were dominated by China's state-owned UnionPay; Visa now enters this space following competitors American Express and Mastercard, which also received clearing licenses.
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52 Articles
Main competitors, MasterCard and American Express, received business licenses back in 2020.
Visa has received permission to enter China's domestic payment market
Visa has received permission to enter China's domestic payment market. The People's Bank of China has approved the start of preparations for the creation of a structure that will deal with clearing bank card transactions within the country, Visa...
Visa China approval: the card giant can prepare a domestic business
Visa has won approval to start preparing a domestic bank card clearing business in China, the company said on Tuesday. The People’s Bank of China approved its “Application to Prepare”, which lets Visa begin formal preparations. It does not yet let Visa process domestic payments. Visa first applied to the central bank in May 2020, […] This story continues at The Next Web
Observador
Unlike American Express and Mastercard, which used joint ventures with Chinese partners, Visa obtained preparatory authorisation through a company incorporated in the country by the multinational itself.
Visa wins approval to prepare a bank card clearing business in China – WTOP News
BEIJING (AP) — U.S. payments giant Visa said Tuesday that it received approval to prepare to set up a bank card clearing business in China, a move that could allow Visa to compete for a share of the country’s large payments market. Some analysts see the development as an encouraging sign for American businesses following...
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