PayPal To Enter China Market After Takeover Approved

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.

Request a Free Trial

As a trusted source of regulatory intelligence for the global payments industry, we enable organisations to manage the growing volume and velocity of regulatory risk with confidence, empowering more informed and effective decision making, in an efficient and cost-effective way.

Take a Trial