Visa must complete preparations within one year, then apply to open for business. PBOC together with National Financial Regulatory Administration will then review and, if satisfied, issue the bank card clearing business license. Until then, Visa cannot issue RMB cards or clear domestic yuan.
"For more than 40 years, Visa has been an active contributor to China's dynamic payments landscape," CEO Ryan McInerney said. "The approval of our Application to Prepare marks a significant step forward."
Why now? Political timing
Trump personally raised Visa's market access with Xi Jinping during his May 2026 Beijing visit, part of a CEO delegation including Mastercard and Visa CEOs, he told Fox News. McInerney then became chairman of the U.S.-China Business Council in June and led a separate trip to Beijing in early September.
Beijing chose to approve just weeks before Trump and Xi are expected to meet again on sidelines of APEC Leaders' Meeting in Shenzhen in November. Analysts call it a goodwill gesture.
"This should be viewed as a goodwill gesture from Beijing towards Washington ahead of the next meeting," said George Chen, partner at The Asia Group. "Beijing is keen to demonstrate tangible progress for American businesses."
After September summit, China said it would approve applications from all foreign financial institutions to operate.
Visa is late - rivals already in
China opened bank card clearing to foreigners in 2015, ending UnionPay monopoly. But approvals were slow:
- American Express first: JV with LianLian approved to prepare in 2018, licensed June 2020
- Mastercard: JV with NetsUnion approved Feb 2020, started processing in 2024
- Visa: Applied May 2020, approval Oct 13, 2026 - 6 years later. Sources told Reuters Visa sought unprecedented 100% ownership, not JV, which delayed.
Until license, Visa only did cross-border foreign-currency cards via dual-branded cards where UnionPay handled domestic leg and Visa handled overseas. In January 2026, Visa said mainland cards could link to Apple Pay for overseas use.
The real battle: WeChat Pay and Alipay, not just UnionPay
China's market is massive but changed. PBOC data: 10.2 billion bank cards in circulation end-2025, 4.6 trillion transactions worth 963.6 trillion yuan ($143.9 trillion) in 2025.
But cards are not how China pays daily. Mobile dominates via Tencent's WeChat Pay and Ant's Alipay with QR scans. State-controlled UnionPay still dominates card clearing. Visa will need bank partnerships to issue cards and convince consumers to switch from phones to cards.
China Daily noted PBOC framing approval as "further step in opening up financial services and implementing outcomes of China-US economic and trade talks."
FAQ
Did China approve Visa today?
Yes. Oct 13, 2026 PBOC website posted administrative approval for Visa Information Technology (Beijing) to begin prep for domestic clearing institution. Visa confirmed.
What does approval allow?
Not immediate operation. It allows 1-year prep to build systems, security, infrastructure per PBOC rules. Then must apply for business license. Only after license can Visa issue Visa-branded RMB cards and clear domestic yuan.
Is the last to get in?
Yes among US giants. Amex JV licensed 2020, Mastercard JV started 2024, Visa approved 2026. All three now approved. Visa is only one seeking wholly-owned unit, per Reuters sources.
Can Visa compete with WeChat Pay and Alipay?
Hard. China is mobile-first. Visa's edge is international acceptance, premium cards, security tech, and serving foreign visitors and outbound Chinese travelers. Domestic share will require bank deals and differentiation, not replacing QR.
Why did Trump get involved?
Greater market access for US financial firms has been Washington priority. Trump raised Visa specifically in May meeting with Xi. Timing before November Xi-Trump meeting signals Beijing using financial opening as diplomatic lever.
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