U.S. digital money transfer platform PayPal Holdings Inc has obtained Beijing’s approval to buy a controlling stake in a domestic payments firm, which would make PayPal the first foreign firm to enter China’s payment services market.
Gopay Information Technology, PayPal’s acquisition target, has received approval from China’s central bank to sell a 70% stake to PayPal, both companies said on Monday, according to Reuters.
„The People’s Bank of China has approved PayPal Information Technologies Co., Ltd.’s acquisition of a 70% equity interest in Guofubao Information Technology Co. (GoPay), Ltd., a holder of a payment business license in China.
We are honored to become the first foreign payment platform to be licensed to provide online payment services in China. We look forward to partnering with China’s financial institutions and technology platforms, providing a more comprehensive set of payment solutions to businesses and consumers, both in China and globally. The transaction is expected to close in the fourth quarter of 2019 and is subject to customary closing conditions.”, said Dan Schulman, President and CEO of PayPal.
PayPal will make the acquisition through a subsidiary in Shanghai. No financial terms were disclosed.
Early last year, China’s central bank announced that it was opening the country’s domestic market to foreign third-party electronic payment firms, a move intended to promote competition in the retail payments industry.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
