You can soon use Visa cards for payments in China
What's the story
Visa, the leading US credit card company, has received the green light from China's central bank, the People's Bank of China (PBOC), to establish a bank card clearing business in the country. The approval comes after over four decades of Visa's presence in China's payment industry. "This marks an important milestone toward the company serving China's domestic payments market," said Visa in a statement.
CEO's statement
Visa's commitment to China's payments landscape
Visa's CEO Ryan McInerney expressed his company's long-standing commitment to China's dynamic payments landscape.
He said, "For more than 40 years, Visa has been an active contributor to China's dynamic payments landscape."
McInerney also emphasized their intention to follow PBOC regulations and start domestic operations in China.
Market access
Visa CEO's visits to China
McInerney had previously joined US President Donald Trump's business delegation to Beijing in May.
He was later appointed chair of the US-China Business Council in June.
The Visa CEO also led a trip to Beijing in early September. Notably, after his May visit, Trump revealed that he had discussed Visa's request for access to China's market.
Application process
Visa's application for bank card clearing institution
Visa had applied with the PBOC in May 2020 to set up a bank card clearing institution.
The company has been collaborating with Chinese banks for dual-branded cards, where UnionPay handles domestic transactions and Visa takes care of international payments.
In January, Visa announced that mainland China-issued cards could be linked to Apple Pay for overseas use.
Strategic timing
Strategic timing of Beijing's approval
George Chen, partner and chair of digital practice at The Asia Group, noted the strategic timing of Beijing's approval for Visa's license.
He said, "The move suggests that Beijing is keen to demonstrate tangible progress for American businesses before Trump's next visit to China."
This comes as the US and Chinese presidents prepare for their third meeting this year.