People's Bank of China Approves Visa's Local Bank Card Clearing Entity
The People's Bank of China on Tuesday approved Visa to prepare a locally registered bank card clearing organisation, according to an online statement from the central bank. The US card payment giant has one year to complete advance arrangements, after which it may apply to begin operations. Once the local clearing organisation is established, Visa would settle domestic yuan transactions directly through its own network. The central bank described the approval as a major step in China's financial opening up. The decision follows a years-long wait for the US company.
Key facts
- The People's Bank of China approved Visa to prepare a locally registered bank card clearing organisation
- The approval was announced on Tuesday in an online statement
- Visa has one year to finish advance arrangements
- After the preparation period, Visa may submit an application to begin operations
- A local clearing organisation would let Visa settle domestic yuan transactions directly through its own network
- The central bank called the move a major step in China's financial opening up
- Visa is a US card payment giant
- The approval came after a years-long wait
Entities
Institutions
- People's Bank of China
- Visa
- China UnionPay
Locations
- China
Sources
- Quartz —
- SCMP Culture —