Visa (NYSE: V) has received approval of its Application to Prepare from the People's Bank of China, allowing the company to begin formal preparations to establish a domestic bankcard clearing institution in China, according to a press release from the company.

Ryan McInerney, Chief Executive Officer of Visa, said the approval marks "a significant step forward in Visa's long-standing commitment to China," adding that the company looks forward to taking the necessary steps "pursuant to the PBOC's regulations, to begin operating domestically in China."

Visa said it will continue efforts to complete the process and begin domestic bankcard clearing operations in China. The company noted it has been active in China's payments landscape for more than 40 years.