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 the country.
The transaction – whose amount was not disclosed – is expected to close in the fourth quarter of 2019 and is subject to customary closing conditions.
With this formal step, Paypal becomes the first foreign payment platform to be licensed to provide online payment services in China. The company will partner with financial institutions and technology platforms to provide a comprehensive set of payment solutions to businesses and consumers, both in China and globally.
Led by Dan Schulman, President and CEO, PayPal Holdings, Inc. (NASDAQ: PYPL) provides a digital payments platform that currently gives 254 million active account holders to connect and transact, online, on a mobile device, in an app, or in person. Available in more than 200 markets around the world, the platform, including Braintree, Venmo and Xoom, enables consumers and merchants to receive money in more than 100 currencies, withdraw funds in 56 currencies and hold balances in their PayPal accounts in 25 currencies.