Visa says it has received approval from China’s central bank, the People’s Bank of China (PBOC), to begin formal preparations to set up a domestic bankcard clearing institution. The approval is described as allowing Visa to move into preparatory steps for handling domestic yuan card transactions within China.
Outlets frame the move as a milestone after a years-long process and as part of a broader opening of the domestic payments market. Channel NewsAsia reports that having a local clearing organisation would enable Visa to settle domestic yuan transactions directly through its network. Bloomberg and the Financial Post similarly highlight that Visa is following other major card networks, which have already established domestic clearing arrangements. Investing.com also reports the approval, emphasizing that Visa has clearance to prepare its domestic payments business.
While specific timelines for operations are not detailed across the reports, all agree on the same core point: Visa receives PBOC approval to prepare for domestic clearing in China, positioning the company to compete more directly in the country’s large card payments market.
