China Approves Visa, American Express and Mastercard Clearing Preparations

The People’s Bank of China approved preparation work for three domestic card-clearing institutions linked to Visa, American Express and Mastercard, expanding the international networks’ planned presence in China’s payments market.

The approvals cover three China-based entities: one wholly foreign-owned company established by Visa, a joint venture tied to American Express and a joint venture tied to Mastercard.

The companies have one year to complete their preparation work. After that, each must submit an application to begin operations to the People’s Bank of China.

The central bank will review the applications jointly with the National Financial Regulatory Administration. The entities can receive card-clearing business licenses and start operating only after that process is completed and approved.

The simultaneous approvals mark a further step in opening China’s card-clearing market to international payment networks. The decision concerns preparation and does not by itself authorize the three entities to begin clearing operations.