PayPal’s purchase of a 70% equity state in GoPay, legally known as Guofubao Information Technology Co. (GoPay), Ltd, has successfully been approved by The People’s Bank of China. This purchase by PayPal will successfully make the company the first foreign payment platform which will serve the purpose of providing online payment services in China.
Through a statement released by Guofubao, PayPal made the purchase of the stake through Yinbaobao Information Technology (Shanghai) Co., Ltd, a Shanghai based subsidiary.
The chinese company, GoPay is said to have licenses for online and mobile transactions, and is a pro in providing payment services for industries comprising of aviation tourism, e-commerce, border commerce, etc.
In China, AliPay and WeChat Pay are the local players who lead the chinese payment market with this glaring rivals, there is more room for PayPal to expand.
It is not news that many firms in the U.S have struggled to enter into China’s payment market. The success by PayPal is said to be a big leap.