PayPal to enter China market through local acquisition

ADVERTISEMENT

dpo-dps-seal
Welcome, Kapamilya! We use cookies to improve your browsing experience. Continuing to use this site means you agree to our use of cookies. Tell me more!

PayPal to enter China market through local acquisition

Reuters

Clipboard

The PayPal app logo seen on a mobile phone in this illustration photo October 16, 2017. Thomas White, Reuters/File/Illustration

HONG KONG -- US 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 percent stake to PayPal, both companies said on Monday.

Gopay has licenses for mobile, online and cross-border yuan payment services, the Chinese company said in its statement.

PayPal will make the acquisition through a subsidiary in Shanghai. No financial terms were disclosed.

ADVERTISEMENT

The transaction is expected to close in the fourth quarter of 2019 and is subject to customary closing conditions, PayPal said.

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.

ADVERTISEMENT

ADVERTISEMENT

It looks like you’re using an ad blocker

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker on our website.

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker on our website.