Chinese online payments company, Guofubao (Gopay), said that the People’s Bank of China had approved PayPal’s acquisition of a 70% stake in the company for an undisclosed sum.
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This deal makes PayPal the first foreign company to enter the Chinese payments market after two years of Beijing stating that its financial services industry would be opened to overseas companies.
Visa and Mastercard are among some of the foreign companies that have been kept waiting for licence approvals, despite rules in 2017 removing formal obstacles to market access.
PayPal will have access to Gopay’s various payments licences, which allow it to offer online, mobile and cross-border renminbi payments and to issue debit cards.
Gopay has licenses for online and mobile transactions, and mainly provides payment products for industries including e-commerce, cross-border commerce, aviation tourism and others.