PayPal Completes GoPay Acquisition, Enters China as First Foreign E-Wallet
Through this deal, PayPal becomes China's first overseas mobile payment company as China opens up its financial market.
PayPal announced on Friday that it has acquired 70% equity interest in Chinese payment services provider GoPay, thus becoming the first overseas mobile payment company to be licensed in China.
"We're pleased to complete this historic transaction, which enables us to broaden our participation in such a dynamic market," Dan Schulman, the chief executive officer of PayPal, said in a statement today.
The acquisition of GoPay, run by Guofubao Information Technology Co. Ltd., was approved by the People's Bank of China in late September, before the phase one deal on trade between Beijing and Washington took place. China's central bank has been gradually accepting foreign financial institutions to enter its markets,
"Removal of these barriers should allow U.S. financial service providers to compete on a more level playing field and expand their services export offerings in the Chinese market," the USTR said in a fact sheet on phase one of the trade deal published on December 13.
Schulman also said, "This important step will allow us to be a stronger partner to Chinese financial institutions and technology platforms. We look forward to contributing to the growth of China's e-commerce and payments ecosystem."
PayPal will compete with mobile wallets Alipay and WeChat Pay, China's largest mobile payment platforms. They are backed by tech giants Alibaba Group Holding Ltd. (NYSE: BABA) and Tencent Holdings Ltd. (HKEX: 0700).
Shares in PayPal closed on Friday at $108.75 apiece, down 13 cents.
