China's Central Bank Clears Visa to Prepare Bank Card Clearing Business

The People's Bank of China has granted Visa approval to begin preparations for establishing a bank card clearing institution in the country, China Daily and CNBC reported. The regulatory green light will allow the company to work toward clearing domestic transactions on cards denominated in Chinese yuan.

According to CNBC, the move marks Beijing's approval for the company to enter the bank card clearing market following about 40 years of operations in China. Payment industry outlet The Paypers also reported that the decision permits Visa's subsidiary to set up the necessary infrastructure for clearing operations.

Further details regarding the timeline for completing the regulatory process and launching full commercial activity have not yet been released.