Visa has become the first overseas card payment company to apply for a bank-card clearing operation in China, reflecting growing challenges to domestic market leader China UnionPay after deregulation. “Visa has filed an application with the People’s Bank of China to participate in the Chinese domestic market as a bank-card clearing institution,” the U.S.-based card payment firm said in a statement, noting its long-term commitment is to grow in China – one of the world’s fastest growing payments markets and the one that many analysts consider is now leading the way in payments innovation. Visa expects the central bank to consider its application in line with the publicly released measures and guidelines for bank-card clearing institution applicants, it said, referring to the latest card payment guidance posted by the central bank on June 30. China’s growing bank card market has attracted various overseas players, which had been able to cooperate with banks to issue dual currency cards in China, but they have been long barred from setting up payment clearing operations in the country. The entry of foreign players will increase competition, but it is still uncertain if they can realistically challenge the dominance of UnionPay, according to Wang Pengbo, Analyst at Analysys. Global rival Mastercard is now also looking forward to “prompt and full market access”, the South China Morning Post reports. At the end of the first quarter, China had 6.3 billion bank cards in circulation, up 11% compared to a year ago. That means that each individual holds 4.53 bank cards on average. In that first quarter, bank card transactions rose to CNY15.2 trillion, up 14%.