PBoC approves Visa (V) to prepare bank card clearing, according to Xinhua

Visa (V) received approval from China's central bank to launch a domestic bank card clearing business, marking a key step into China's payments market. The company must complete further steps before operation. Visa's stock has gained 26% in the past six months, with a price target of $420. Competitors like American Express and Mastercard have already secured licenses. Visa's core business remains strong, with Q3 revenue up 14% to $11.6 billion.

China's central bank approved Visa's subsidiary to set up a bank card clearing institution, allowing future RMB-denominated services. The company has a year to prepare and apply for operations. Visa's CEO called it a significant step, highlighting China's advanced payments market and financial liberalization.

Visa received approval from Chinese authorities to prepare for domestic bank card clearing operations. The company has one year to complete preparations before applying for full permission. Visa's existing operations in China involve co-branded cards with UnionPay. Mastercard and American Express have already secured similar approvals. The timing of the approval coincides with upcoming U.S.-China meetings, suggesting progress in commercial relations.

Visa has received a license from the People's Bank of China to issue bank cards in the country, marking a significant expansion after 40 years of operations.

Visa stock rose 1.4% in pre-market trading after China's central bank approved its plans to establish a domestic bankcard clearing institution. The approval allows Visa to prepare for a full operating license within a year. Baird raised its price target to $430, citing strong momentum and expected earnings beat. Visa's stock reached a 52-week high of $394.83 in pre-market trading.

Visa (NYSE: V) received approval from China's central bank to operate a bank card clearing system, allowing it to process transactions independently in China. The news led to a 1.6% premarket share price increase. Visa is currently trading at $389.27, which is 4.3% below its intrinsic value estimate of $406.81, according to GF Value™. The company has a GF Score™ of 99 out of 100, reflecting strong financial health and growth prospects.