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PayPal to Enter China with Stake in Gopay

PayPal
PayPal to Enter China with Stake in Gopay

PayPal acquired a 70% stake in Chinese company Gopay, becoming the first foreign company to acquire a payments license in China, according to the Financial Times.

The UK newspaper said China’s online payments market is currently dominated by Tencent, which runs WeChat Pay via its social-messaging platform, and Alibaba, whose payments affiliate Ant Financial owns Alipay.

It’s been a long time coming. PayPal had been “cautiously optimistic” it would receive a license to process payments in China back in 2012. As we noted at the time, PayPal enabled Chinese companies engaged in cross border trade, but it could not operate domestically in China.

TechCrunch said the terms of the new deal were not disclosed, and it also noted it comes at a time of increased tensions between the US and China. It published a statement from PayPal about the deal – the following is an excerpt:

“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.”

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.