Visa has received approval from the People’s Bank of China (PBOC) to prepare for a domestic bankcard clearing institution in China.

The approval covers Visa’s Application to Prepare. As a result, the company can now begin formal work to establish the institution.

However, the approval does not yet permit Visa to start clearing operations. The company must first complete further steps under PBOC regulations.

Visa described the decision as an important milestone towards serving China’s domestic payments market.

“The approval of our Application to Prepare marks a significant step forward in Visa’s long-standing commitment to China,”

said Ryan McInerney, Chief Executive Officer of Visa.

In addition, McInerney acknowledged the role of US and Chinese leaders in pursuing a constructive and strategically stable relationship.

He noted that Visa has been active in China’s payments sector for more than 40 years.

According to McInerney, the company will now take the steps required under PBOC regulations to begin domestic operations.

Visa described China as an advanced digital payments market and noted the country’s continued commitment to further liberalising its financial sector.

Furthermore, Visa said it intends to contribute to the continued development of China’s domestic payments sector.

Meanwhile, the company will continue its efforts to complete the process and begin domestic bankcard clearing operations in China.

Featured image: Edited by Fintech News Hong Kong, based on image by Frolopiaton Palm via Magnific.