PayPal can now enter China through its acquisition of GoPay.
- The People’s Bank of China has approved PayPal’s application to buy 70% equity in GoPay.
- GoPay provides payment solutions for ecommerce, crossborder commerce and more.
- PayPal will be the first foreign company to provide online payments in China.
What does this mean?
China’s central bank is slowly opening up the market for foreign payments players, which will have to compete with established local players such as WeChat Pay and AliPay. Often, like PayPal, it’s necessary to set up a joint venture with a local company. American Express has been given permission for card-clearing services, but Mastercard is still attempting to enter the market.