Digital payments company Visa (NYSE:V) announced on Tuesday that it has received approval from the People's Bank of China (PBOC) to begin formal preparations to establish a domestic bankcard clearing institution in China, marking progress toward entering the country's domestic payments market.

This approval allows Visa to advance the process in accordance with PBOC regulations.

Visa CEO Ryan McInerney said the approval represents a significant step in the company's long-standing commitment to China, where it has contributed to the payments sector for more than 40 years.

Visa said it aims to bring its payment innovation, security and reliability to Chinese consumers and businesses, supporting the development of the country's domestic payments market.

The company will continue working to complete the required process and establish domestic clearing operations in China.