The People's Bank of China (PBOC) authorized Visa on Tuesday (13) to begin preparations to establish a bank card clearing institution in the country. The decision opens the way for the company to operate in the processing of domestic payments in yuan, a market historically dominated by UnionPay. The authorization, however, does not yet allow operations to begin.
The approval was granted to Visa Information Technology (Beijing), a company incorporated by the American company in China. The new structure will allow Visa, after obtaining the final license, to process domestic transactions through its own network, an activity until now concentrated mainly in local institutions.
The size of this market helps explain the importance of the decision. In 2025, the Chinese system recorded 4.6 trillion bank card transactions, handling 963.6 trillion yuan (US$ 143.9 trillion), according to central bank data cited by Reuters.
The figures correspond to the aggregate of card operations in China. They do not represent Visa revenue nor indicate how much of this volume could be captured by the company.
Visa will have one year to complete preparations before applying for an operating license
The authorization establishes a two-stage regulatory process. Visa will have up to one year to complete the preparations for the clearing institution and, only afterward, may submit the request to begin operations.
That request will depend on a new assessment by the PBOC and China's National Financial Regulatory Administration. If the agencies approve the request, the license will be issued allowing the company to effectively offer domestic card clearing services.
The distinction is important because Tuesday's announcement does not set a date for the start of processing payments in yuan. In a statement, Visa CEO Ryan McInerney said the company will continue to comply with the regulatory requirements necessary to start its local operations.
The company will also encounter already established international competitors. American Express received operating authorization in 2020, while Mastercard obtained its license in 2023, both through partnership structures with Chinese companies.
UnionPay remains the main participant in domestic card processing, while platforms such as Alipay and WeChat Pay also hold relevant positions in the daily life of Chinese digital payments.
For Visa, the next milestone will be the completion of the local structure and the submission of the application for the final license. Until this authorization is granted, entry into domestic processing will remain restricted to the preparatory phase.
