Paypal buys 70% stake in Chinese payment firm GoPay Description video: U.S. digital money transfer platform PayPal has gained China’s approval to buy a controlling stake in the Chinese payment firm GoPay, making it the first foreign company to enter […]
Paypal buys 70% stake in Chinese payment firm GoPay
U.S. digital money transfer platform PayPal has gained China’s approval to buy a controlling stake in the Chinese payment firm GoPay, making it the first foreign company to enter the market in China. CGTN’s Chen Tong takes a look. #Paypal #GoPay\n\nSubscribe to us on YouTube: https://goo.gl/lP12gA\nDownload our APP on Apple Store (iOS): https://itunes.apple.com/us/app/cctvnews-app/id922456579?l=zh\u0026ls=1\u0026mt=8\nDownload our APP on Google Play (Android): https://play.google.com/store/apps/details?id=com.imib.cctv\n\nFollow us on:\nWebsite: https://www.cgtn.com/\nFacebook: https://www.facebook.com/ChinaGlobalTVNetwork/\nInstagram: https://www.instagram.com/cgtn/?hl=zh-cn\nTwitter: https://twitter.com/CGTNOfficial\nPinterest: https://www.pinterest.com/CGTNOfficial/\nTumblr: http://cctvnews.tumblr.com/\nWeibo: http://weibo.com/cctvnewsbeijing\nDouyin: http://v.douyin.com/aBbmNQ/
PayPal became the first overseas company to own 100% of a payment service in China
PayPal Holding Inc has become the first foreign operator with 100% control of the payment platform in China, as the American fintech giant sees great prospects in the rapidly developing online payment market in the Middle Kingdom.
At the end of the year, PayPal acquired a 30% stake in the Chinese company GoPay, officially known as Guofubao Information Technology Co. At that time, she already owned 70% of the local operator’s securities. Financial details of the deal were not disclosed, but it is known that thanks to it PayPal becomes the first foreign company to obtain a license to provide online payment services in China.
Taking full control of one of the smaller players in the world’s largest payments market, PayPal will compete with local industry giants like Alipay, owned by Alibaba and WeChat Pay, controlled by Tencent Holdings Ltd, as China promotes opening your financial sector to foreign partners.
The share purchase also comes amid Beijing’s antitrust campaign against Alibaba Group Holding Ltd and other internet companies..
Last August, PayPal appointed Hannu Qiu head of Chinese business, responsible for developing long-term strategy in the world’s second largest economy. Qiu was the former head of the fintech division of OneConnect at insurance company Ping An Group, according to PayPal..
PayPal said in its 2019 annual report that its initial mission in China is to provide cross-border payment solutions to local entrepreneurs and consumers in order to connect the country’s commercial ecosystem with the global PayPal network..
However, in this area, PayPal also faces the prospect of competition from Chinese companies..
Bill Dan, CEO and Co-Founder of Shanghai-based payment platform Xtransfer, which provides international money transfers for Chinese entrepreneurs, spoke out about his ambitions for competitor PayPal.
«We see ourselves as Chinese PayPal in cross-border business», – Dan told Reuters.