Visa China has officially received approval from the People's Bank of China to prepare a bank card clearing institution within China.
The People's Bank of China's updated administrative licensing information disclosure for bank card clearing institutions on October 13 shows that Visa Information Technology (Beijing) Co., Ltd. has been approved to prepare a bank card clearing institution. Visa is the third international card organization to be approved to establish a bank card clearing institution in China, following American Express and Mastercard.
According to relevant requirements, Visa must complete the preparatory work within one year, after which it can submit an opening application. Once the People's Bank of China, together with the National Financial Regulatory Administration, approves it, a bank card clearing business license will be issued. If the bank card clearing business license is successfully obtained, it will be able to expand member institutions, authorize the issuance and acceptance of "Visa" brand bank cards within China, and no longer need to enter the RMB clearing market through dual-brand cards.
Visa stated that it will continue to complete follow-up work and carry out bank card clearing business within China. Currently, there are three bank card clearing institutions in China: China UnionPay, LianTong (Hangzhou) Technology Services Co., Ltd., and WanshiNet Information Technology (Beijing) Co., Ltd.
Unlike American Express and Mastercard, which chose to establish joint ventures within China to obtain bank card clearing business licenses, Visa chose to apply through a wholly foreign-owned enterprise. Visa Information Technology (Beijing) Co., Ltd. is a corporate entity established by Visa in China and is a foreign-invested enterprise. The shareholders of Visa Information Technology (Beijing) Co., Ltd. are Visa Worldwide Pte. Ltd. and Visa International Service Association.
Commenting on Visa's approval to prepare a bank card clearing institution, Visa Chief Executive Officer Ryan McInerney said in an interview: "For more than four decades, Visa has been actively participating in the development of China's payment industry and has continuously contributed to the construction and innovative development of China's payment ecosystem. Visa's approval to prepare a bank card clearing institution is an important milestone in Visa's long-term commitment to serving the Chinese market."
"China is one of the world's most advanced and dynamic digital payment markets, with a highly innovative payment ecosystem and continued high-level opening-up of the financial sector. Visa looks forward to further bringing its globally leading innovation capabilities, security safeguards, and operational experience to the Chinese market, better serving Chinese consumers and corporate clients, and contributing to the continued innovation and development of China's payment industry." Regarding Visa's development plans in China, McInerney stated that it will actively carry out preparatory work under the guidance of the People's Bank of China to strive for early commencement of operations in the country.
After commencing domestic operations, Visa will have the opportunity to support Chinese clients in issuing Visa-branded payment products that can be accepted within China, and further promote the development of China's digital payments.