Paypal Becomes First Foreign Payment Platform In China

(RTTNews) - PayPal Holdings Inc (PYPL) will become one of the first international companies to gain a payments license in China, following the state-owned People's Bank of China approval for PayPal's acquisition of a majority stake in local company GoPay.

U.S. digital money transfer platform PayPal, through one of its local China-based subsidiaries Yinbaobao, will acquire a 70% stake in GoPay. No financial terms were disclosed. The deal is expected to close in the fourth-quarter of 2019.

GoPay, officially known as Guofubao Information Technology Co., was set up in 2011 as a joint venture between the China International Commerce Center and HNA Retailing Holding.