BEIJING, Oct. 13 (Xinhua) -- China's central bank has approved an application from a subsidiary of Visa to set up a bank card clearing institution in China, a step forward in the country's financial opening up.
Visa Information Technology (Beijing) Co. Ltd. is required to complete its preparations and apply to commence operations within a year, the People's Bank of China (PBOC) said on Tuesday.
The bank card clearing business license will be issued after the PBOC and the National Financial Regulatory Administration jointly approve the application.
"The approval of our Application to Prepare marks a significant step forward in Visa's long-standing commitment to China," said Ryan McInerney, CEO of Visa. "For more than 40 years, Visa has been an active contributor to China's dynamic payments landscape."
"China is one of the world's most advanced and dynamic digital payments markets, supported by a highly innovative ecosystem and continued commitment to further financial sector liberalization," said Visa in a statement after the approval on Tuesday.
Under current regulations, once it is approved to commence operations, Visa will be able to provide clearing services and issue bank cards denominated in renminbi (RMB). The company is currently permitted to provide such services in China only in foreign currencies.
PBOC Governor Pan Gongsheng met with Visa CEO McInerney on May 15 this year. They exchanged views on issues including China-U.S. economic and trade relations, and Visa's development in China.
American Express secured approval in 2018 to establish a bank card clearing institution through its Chinese joint venture, Express (Hangzhou) Technology Service Co., which launched operations in 2020, becoming China's first foreign-funded bank card clearing institution. Mastercard likewise secured approval in 2020 and started operations in 2024.
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