Visa aims to begin domestic bank card clearing operations in China at the earliest opportunity following preparatory approval, CEO Ryan McInerney said, describing the initial green light as a significant step in the company's long-standing commitment to the Chinese market.

The People's Bank of China, the central bank, posted on its website on Tuesday that it had approved Visa's Chinese subsidiary to begin establishing a bank card clearing institution, marking a further step in opening up financial services and implementing the outcomes of China-US economic and trade talks.

Bank card clearing services mainly involve authorizing the issuance and acceptance of cards bearing a clearing institution's brand, operating payment infrastructure and processing transactions between card issuers and acquirers.

READ MORE: PBOC approves Visa's RMB card clearing preparations

"The approval of our 'Application to Prepare' marks a significant step forward in Visa's long-standing commitment to China," McInerney said. "We look forward to taking the necessary steps in the process, pursuant to the PBOC's regulations, to begin operating domestically in China."

Once domestic operations begin, Visa would be able to support clients in China in issuing Visa-branded payment products accepted within the country, he added.

China Daily learned from the PBOC that Visa's subsidiary must complete preparations within one year before applying to commence operations. A bank card clearing business license would be issued following approval by the PBOC and the National Financial Regulatory Administration.

Visa has long provided cross-border clearing services for foreign-currency bank cards in China. Until it obtains the license, Visa cannot issue Visa-branded renminbi bank cards in China or provide RMB bank card clearing services to domestic entities.

"For more than 40 years, Visa has been an active contributor to China's dynamic payments landscape," McInerney said, describing the country as one of the world's most advanced digital payment markets, with a highly innovative payments ecosystem and continued efforts to advance high-standard financial opening-up.

"We have always been confident in China's development prospects and highly optimistic about the long-term potential of its economy and payments market," he said, adding that Visa hopes to bring more of its innovation capabilities, security expertise and operational experience to China.

McInerney, who is also board chair of the US-China Business Council, highlighted the role of business cooperation in supporting US-China bilateral relations.

"Business cannot resolve all the challenges in bilateral relations, but it can be a positive, pragmatic and stabilizing force," he said.

By keeping communication channels open, demonstrating tangible results from cooperation and creating shared interests that support stable expectations and continued engagement, companies can serve as bridges for mutual understanding and cooperation, he said.

China currently has three licensed bank card clearing institutions — China UnionPay and the local entities of American Express and Mastercard — with a more diversified and competitive market gradually taking shape.

Visa's entry would contribute to diversifying China's bank card clearing market, enriching onshore payment services and further improving payment convenience for overseas visitors, thereby supporting international exchanges and trade, market mavens said.

"Greater competition could spur existing market players to improve services and offer more competitive fees, thus encouraging more market-driven clearing fees and broadening international card acceptance," said Lou Feipeng, a researcher at Postal Savings Bank of China.

Contact the writers at zhoulanxv@chinadaily.com.cn