PayPal announced on December 19 that it has completed its acquisition of a 70% equity stake in GoPay, making PayPal the first foreign payment platform to provide online payment services in China.
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Paypal acquired the stake in Gopay through its Shanghai-based subsidiary Yinbaobao Information Technology. The country’s central bank, People’s Bank of China, approved of the deal towards the end of September this year. When reached for comment pertaining the deal size, the companies opted not to disclose the details.
Gopay is a relatively small player in China’s payment space, which is dominated by Alipay and WeChat Pay. However, with the partnership, Paypal gains access to the firm’s license to provide online, mobile, and cross-border Chinese yuan payments, something it has been working on for years.
“We’re pleased to complete this historic transaction, which enables us to broaden our participation in such a dynamic market,” Dan Schulman, president and chief executive of PayPal, said in a statement. “This important step will allow us to be a stronger partner to Chinese financial institutions and technology platforms.”
PayPal is the second US firm gaining entrance to the Chinese market. Towards the end of last year American Express gained permission to bring its card clearing services to China.