The People's Bank of China (PBOC) announced on Tuesday, 13 October, that it has approved an application from a subsidiary of Visa to set up a bank card clearing institution in China, describing the decision as a step forward in the country's financial opening up.
Visa Information Technology (Beijing) Co. Ltd. is required to complete its preparations within a year, after which it can apply to commence operations, the PBOC said. The clearing licence will be issued after the PBOC and the National Financial Regulatory Administration jointly approve the application.
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).
Visa said in a statement after the approval that 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 liberalisation.
The company is currently permitted to provide such services in China only in foreign currencies. American Express secured approval in 2018 and launched operations in 2020 through its Chinese joint venture, becoming China's first foreign-funded bank card clearing institution. Mastercard secured approval in 2020 and started operations in 2024.
Sources: ichongqing.info, en.people.cn