PayPal enters digital payments market in China with GoPay acquisition

Tuesday 1 October 2019 07:49 CET | News

The state-owned People’s Bank of China (PBOC) has greenlighted PayPal’s acquisition of a majority stake in local company GoPay.

This will allow PayPal to become one of the first international companies to gain a payments licence in China.

PayPal, through one of its local China-based subsidiaries called Yinbaobao, will acquire a 70% stake in GoPay, according to a statement on GoPay’s website. The deal is expected to close in Q4 2019.

GoPay, officially known as Guofubao Information Technology Co., was set up in 2011 as a joint venture between the China International Commerce Center (CIECC) and HNA Retailing Holding, a subsidiary of the Chinese conglomerate HNA Group.

This announcement, while a milestone moment for PayPal, doesn’t come as a complete surprise. The PBOC previously revealed that it would open up the domestic market to foreign payments companies in order to support competition.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: PayPal, Peoples Bank of China, PBOC, acquisition, GoPay, digital payments, China
Countries: World