BEIJING: US payments firm Visa has received approval from China’s central bank to prepare for a domestic bankcard clearing institution in the country.
The approval comes after US President Donald Trump’s summit with Chinese leader Xi Jinping earlier this year, which included more than a dozen chief executive officers of top US companies, including those of payment giants Mastercard and Visa.
Visa was hoping to break into the Chinese market with a 100% ownership stake in a future joint venture licence like rivals Mastercard and Amex, sources told Reuters.
In May this year, Trump told Fox News that he had pressed Chinese officials on granting Visa greater access to China’s credit card market.
China opened its market to foreign bank companies in 2016, but required foreign service providers to set up technology and data infrastructure and backup data systems in China.
Mastercard received approval to clear domestic yuan-denominated bankcard transactions through a joint venture with NetsUnion in 2023. — Reuters
