China approves Visa’s preparations for domestic bankcard clearing
China’s central bank has cleared Visa to prepare a local bankcard clearing institution, but the company has not yet been authorised to start domestic operations.
Visa said on 13 October that China’s central bank had approved its application to prepare a locally registered bankcard clearing institution. The decision moves Visa toward processing domestic yuan transactions on its own network, but does not authorise it to start those operations.
What Visa must do before domestic clearing can begin
The People’s Bank of China gave Visa one year to complete its business preparations, according to the South China Morning Post. Visa chief executive Ryan McInerney said the company would take the steps required under central bank regulations to begin domestic operations. Neither source establishes when those operations might start.
Domestic yuan card transactions in China have historically been dominated by state-owned UnionPay, the South China Morning Post reported. Overseas providers have been able to process foreign-currency payments on multi-currency cards; a local clearing institution would allow Visa to settle domestic yuan transactions through its own network.
Sources and context
- Visa Receives Approval to Begin Preparations for a Domestic Business in ChinaVisa (distributed by Business Wire; hosted by Via TT)
- China approves locally registered bank card organisation for VisaSouth China Morning Post
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