American digital payment platform PayPal Holdings Inc recently gained approval of the People's Bank of China, which allows the company to purchase a controlling stake in Chinese payment companies and makes it the first foreign organization that enters the Chinese payment service market.
Chinese third-party payment service provider Gopay recently published an announcement, stating that the People's Bank of China has approved its equity change application. PayPal will acquire 70% equity of Gopay, making it the actual controller of the latter. Gopay owns licenses for mobile, online, and cross-border Renminbi payment services.
By far, no financial term was revealed. PayPal said that the transaction is expected to be closed in the fourth quarter of 2019.
It is said that PayPal is a global leading third-party payment company listed on Nasdaq. It covers more than 200 countries and regions, has over 286 million active payment accounts, and supports trades in more than 100 currencies.
At the beginning of 2018, the People's Bank of China announced to open the Chinese market to foreign third-party electronic payment companies, aiming to promote competition in the retail payment industry.