Payments giant Visa said Tuesday it has received approval to prepare to establish a bank card payment clearing business in China, a move that could allow the U.S. firm to compete for a share of the large Chinese payments market.
Some analysts consider the progress an encouraging sign for American companies following the Chinese leader’s meetings. Xi Jinping with the president Donald Trump during a state visit to Washington last month.
The payment processing company based in San Francisco noted that the long-awaited approval represents “a significant step in Visa’s long-standing commitment to China.”
Visa CEO Ryan McInerney said in a statement: “We greatly appreciate the important role of the leaders of the United States and China in pursuing a constructive and strategically stable relationship between the world’s two largest economies.”
China’s official Xinhua news agency said authorities require Visa to complete the preparatory work within one year. After that, you can apply to start your domestic bank card clearing operations in the country.
Card payment clearing is the process by which banks exchange and verify purchase information to calculate how much should be transferred to a merchant.
Mastercard and American Express have already begun domestic clearing in China through joint ventures.
President Donald Trump said he raised the issue of Visa access during his visit to Beijing in May.
McInerney was on the guest list at the Trump-Xi dinner at the White House during Xi’s trip to Washington, along with Mastercard CEO Michael Miebach.
George Chen, partner and chair of the digital practice at The Asia Group, said the approval could be interpreted as a gesture of goodwill from China toward the United States ahead of a planned November meeting between Xi and Trump in Shenzhen, China, which would be their third in-person meeting this year.
Chen, of the Washington-based consulting firm that advises companies on doing business in markets including Asia, commented in writing: “The timing is notable. The move suggests that Beijing is interested in demonstrating tangible progress for American companies before Trump’s upcoming visit to China.”
Greater market access in financial services has long been a priority for Washington, he added, and approval of Visa can be seen as a positive sign of China’s willingness to expand opportunities for foreign companies.
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This story was translated from English by an AP editor with the help of a generative artificial intelligence tool.
Source: www.independentespanol.com
