PayPal gets the approval from People’s Bank of China to acquire 70% equity stake in GoPay (Guofubao Information Technology Co. [GoPay], Ltd.). This procurement allowed PayPal to make its first entry as foreign payment platform to offer online payment services in China.
GoPay has got licenses for online and mobile transactions and it delivers payment products for industries like cross-border commerce, aviation tourism, e-commerce etc. PayPal steps into China when the situation between the U.S. and China is apprehensive with regards to The White House that is apparently planning to restraint some U.S. investments in China.
Although there are many players like AliPay and WeChat Pay in China on the mobile side, PayPal still has scope to grow. It is speculated that mobile payments are expected to elevate to 21.8% from 2017 to $96.73 trillion in 2023.
Apparently, it is estimated that total number of mobile payment customers could reach 956 million by 2023 right from 562 million in 2017.
Read through PayPal’s complete statement:
The People’s Bank of China has approved PayPal Information Technologies Co., Ltd.’s acquisition of a 70% equity interest in Guofubao Information Technology Co. (GoPay), Ltd., a holder of a payment business license in China. We are honored to become the first foreign payment platform to be licensed to provide online payment services in China. We look forward to partnering with China’s financial institutions and technology platforms, providing a more comprehensive set of payment solutions to businesses and consumers, both in China and globally. The transaction is expected to close in the fourth quarter of 2019 and is subject to customary closing conditions.