N環球 
China's central bank approves Visa to prepare bank card clearing business
The PBOC approved preparations by Visa's Chinese subsidiary to establish a bank card clearing institution, with one year to complete preparations before licensing by the PBOC and the National Financial Regulatory Administration. China currently has three licensed clearing institutions.
Why it matters
The People's Bank of China announced on its website that it has approved an application by Visa's Chinese subsidiary to prepare for establishing a bank card clearing institution — a landmark step in financial-services opening and in implementing the outcomes of China-US economic and trade talks. The approval does not yet allow Visa to clear domestic renminbi transactions: the subsidiary must complete preparations within one year, then obtain a bank card clearing business license following approval by the PBOC and the National Financial Regulatory Administration before it can issue Visa-branded renminbi bank cards or clear renminbi transactions for domestic entities.
Full report
China currently has three licensed bank card clearing institutions: China UnionPay and the local entities of American Express and Mastercard. Visa has been active in China for more than 40 years but long limited to cross-border clearing for foreign-currency cards; it applied in May 2020 to establish a clearing institution. "The approval of our Application to Prepare marks a significant step forward in Visa's long-standing commitment to China," said CEO Ryan McInerney, who also credited the leaders of the United States and China for pursuing "a constructive and strategically stable relationship between the world's largest economies."
The timing is notable: the US and Chinese presidents plan a third meeting this year, and President Trump has publicly said he raised Visa's market-access request with Beijing. After the September summit, China said it would approve applications from all foreign financial institutions seeking to operate in the country.
💬 Comments
No comments yet. Be the first!