Visa wins approval for China card business

By the Editorial Team · Wednesday, October 14, 2026

Visa has obtained permission from the People’s Bank of China to establish a wholly foreign-owned card-clearing business in mainland China, allowing it up to one year to complete preparatory steps before full operations. This approval marks the first time a foreign card network can independently clear transactions in China, signaling a cautious but meaningful opening of the country’s tightly controlled payments market amid ongoing US-China diplomatic engagement.

Visa has received approval from the People’s Bank of China (PBOC) to prepare for establishing a local card-clearing business, marking a notable development in the company’s efforts to enter China’s domestic payments market. The move, announced in late October, allows Visa to spend up to one year completing preparatory steps before applying to start full operations. If successful, Visa would become the first foreign card network to run a wholly owned clearing entity within mainland China.

Visa’s approval follows years of pursuit in a market traditionally dominated by the state-backed UnionPay network, alongside the widespread use of mobile payment platforms Alipay and WeChat Pay operated by Alibaba and Tencent. These platforms rely heavily on QR code payments and have transformed the daily transaction landscape, presenting a changed market environment since Visa first sought entry at least as far back as 2015.

The PBOC’s announcement came weeks after President Xi Jinping’s state visit to the United States and aligns with ongoing commitments by both Beijing and Washington to open China’s financial sector. Earlier in the decade, a World Trade Organization ruling favored the United States in a dispute over China’s restrictions on foreign payment providers. However, China did not immediately comply, maintaining tight control over its payments infrastructure.

Under previous trade agreements reached during the Trump administration, other US card companies had seen progress: American Express and Mastercard obtained approvals to operate joint ventures with local partners in 2018 and 2020, respectively. Visa’s entry as a fully foreign-owned enterprise marks a further opening beyond these earlier arrangements.

Visa’s Chief Executive Officer, Ryan McInerney, described the approval as a “significant step forward” and credited ongoing diplomatic engagement between the leaders of the United States and China for helping to facilitate the breakthrough. He was part of a recent US delegation visiting Beijing and emphasized Visa’s long-standing commitment to the Chinese market.

Experts noted the approval could signal goodwill ahead of upcoming meetings between Xi Jinping and Donald Trump scheduled at the Asia-Pacific Economic Cooperation forum and the G20 summit. The decision is viewed as a carefully measured development within China’s broader financial opening-up efforts.

However, analysts caution that while Visa’s entry introduces more competition and options in China’s card-clearing sector, it does not necessarily indicate rapid or widespread changes in market access policies for other foreign firms. The dominance of QR code payments and the entrenched presence of local technology giants continue to shape the competitive landscape.

Some US financial institutions awaiting approval may see increased optimism following Visa’s success, but the overall process remains gradual. As Visa prepares to integrate more fully into China’s domestic financial system, the move underscores the complex interplay of commercial ambitions and geopolitical considerations shaping US-China economic relations.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.