Visa gets China central bank approval to prepare for domestic business
US payments firm Visa has received approval from China's central bank to begin preparations for a domestic bankcard clearing institution. The move follows US President Donald Trump's summit with Chinese leader Xi Jinping and Trump's push for greater Visa access to China's credit card market.
US payments firm Visa has received approval from China's central bank to begin preparations for a domestic bankcard clearing institution in the country, it said in a statement on Tuesday 13 October.
The approval comes after US President Donald Trump's summit with Chinese leader Xi Jinping earlier this year, which included more than a dozen chief executives of top US companies, including those of payment giants Mastercard and Visa.
Visa was hoping to break into the Chinese market with a 100 per cent ownership stake in a future joint venture licence like rivals Mastercard and American Express, sources told Reuters at the time.
In May, Trump told Fox News that he had pressed Chinese officials on granting Visa greater access to China's credit card market.
China opened its market to foreign bank companies in 2016, but required foreign service providers to set up technology and data infrastructure and backup data systems in the country. Mastercard received approval to clear domestic yuan-denominated bankcard transactions through a joint venture with NetsUnion in 2023.
"The approval of our Application to Prepare marks a significant step forward in Visa's long-standing commitment to China," Visa CEO Ryan McInerney said in a statement.