Payment services giant PayPal has succeeded in its long-running attempts to crack China’s booming payments market by acquiring a licensed local firm, in what it said is a world-first for a foreign digital payments provider.
The People’s Bank of China (PBOC) has approved PayPal’s purchase of a 70 percent stake in Guofubao (GoPay), a Chinese payment services provider, the companies said on Monday.
Guofubao holds domestic licences allowing it to provide digital payment services, carry out cross-border payments in renminbi and issue prepaid cards. It said that PayPal had bought the controlling stake through a Shanghai-based subsidiary.
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