With its acquisition of 70 percent of GoPay, a domestic payments provider in China, PayPal is all set to enter China’s payment services market which is currently dominated by Tencent WeChat Pay and Alibaba’s AliPay.
Gopay Information Technology has received approval from China’s central bank to sell a 70% stake to PayPal. This makes PayPal the first foreign firm enter digital payment services market in China.
By taking on majority ownership of GoPay, PayPal gains access to the Chinese firm’s license to provide online payments.
“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,” says PayPal CEO Dan Schulman.
The deal is expected to close in the fourth quarter of 2019. No financial terms have been disclosed. The transaction is subject to customary closing conditions.