PayPal to enter China market through local acquisition

FILE PICTURE: PayPal’s logo is seen at an office in Berlin, Germany, on March 5, 2019 at the latest. REUTERS/Fabrizio Bensch

HONG KONG (Reuters) – the U.S. digital money transfer platform PayPal Holdings, Inc. (PYPL.D) it has obtained Beijing’s approval to buy a controlling stake in a payments company, that would make two of the largest foreign company in China to enter the market for payment services.

Gopay Information Technology, a PayPal acquisition, the target has received approval from China’s central bank, on the sale of a majority stake of 70%, to, PayPal, with both companies said on Monday.

Gopay has a license for the mobile, online and cross-border yuan payment services, the Chinese company said in a statement.

PayPal will be the acquisition of a branch office in Shanghai. No financial terms were disclosed.

The transaction is expected to close in the fourth quarter of 2019, and is subject to customary closing conditions, PayPal said.

At the beginning of last year, china’s central bank has announced that it will open the country’s domestic market for international third-party electronic payment companies, in a move to promote competition in retail payment systems.

Reporting by Meg Shen; Editing by Toby Chopra

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