China approves local clearing organisation for Visa after years-long wait
With a local clearing organisation in China, Visa would be able to settle domestic yuan transactions directly with its own network.
US payments firm Visa said on Oct 13, 2026 that it had received approval from China's central bank to begin preparations for a domestic bankcard clearing institution in China. (Photo: Reuters/Dado Ruvic)
The People’s Bank of China on Tuesday (Oct 13) gave its approval to Visa to make preparations for a locally registered bank card clearing organisation, calling the move a major step in the country’s financial opening up in an online statement.
The US card payment giant will have one year to finish its advance arrangements, after which it may submit an application to begin operations, the central bank added.
With a local clearing organisation, Visa would be able to settle domestic yuan transactions directly with its own network.
Historically, these transactions were dominated by China’s state-owned service UnionPay, while overseas providers could process foreign currency payments for multi-currency cards.
In recent years, the establishment of joint ventures allowed for the handling of some domestic transfers by foreign service providers.
Visa competitor American Express received a clearing licence for its joint venture in 2020, followed by Mastercard in 2023. However, Visa’s local branch would be permitted to do so as a wholly foreign-owned enterprise.
The PBOC’s announcement, coming weeks after President Xi Jinping’s state visit to the United States, marks a continuation of China’s pledge to open its financial sector.
During the trade negotiations ahead of the trip, both sides reached “a consensus in principle” in the field of financial services, according to China’s Ministry of Commerce, including the approval of applications from American financial institutions to establish local Chinese branches.
Visa CEO Ryan McInerney said in a press release that the approval marked “a significant step forward in Visa’s long-standing commitment to China.
“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,” he said.
McInerney added that “we greatly appreciate the important role of the leaders of the United States and China in pursuing a constructive and strategically stable relationship between the world’s largest economies.”
McInerney was also part of the delegation of CEOs who joined US President Donald Trump on his state visit to Beijing in May.
On Tuesday, Chinese Vice-Premier He Lifeng met with a delegation from the National Committee on US-China Relations, saying that both sides should inject greater certainty and stability into bilateral economic cooperation, as well as the global economy.
Visa first submitted its application to the PBOC in July 2017. In 2019, an official from the central bank confirmed to Chinese media that Visa had voluntarily withdrawn its application materials in January 2018, submitted a revised application three months later and had entered an ongoing review process.
