March 4, 2021 All Things Fintech in Africa

PayPal Becomes the First Foreign Company to Secure Chinese Payments License

 

Paypal earns a Chinese Payment License after it gains a 70% stake in Guofbao Information Technology Co (Go Pay).  Thus, they have become the first foreign platform that provides online  payment services in China.

In a statement by PayPal’s CEO, Dan Schulman, he disclosed that the People’s Bank of China has approved the GoPay acquisition.

The statement reads: “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 China. We are honored to become the first foreign payment platform to be licensed to provide online payment services in China. We look forward to partnering with China’s financial institutions and technology platforms, providing a more comprehensive set of payment solutions to businesses and consumers, both in China and globally. The transaction is expected to close in the fourth quarter of 2019 and is subject to customary closing conditions.”

The acquisition has however made Paypal, the US-based payment provider, the first foreign platform in China. Considering how the Chinese financial market hardly accommodated foreign-based companies, this gives PayPal a chance to secure a spot in their rapid growing financial market.

Why this matters

This acquisition has totally opened a new market for PayPal. This new lucrative market has its significant benefits:

  • Paypal’s entrance into the Chinese financial market is a huge expansion for them. The acquisition is set to open new opportunities for Paypal, especially considering how rapidly the Chinese market is growing.
  • The China’s payments market is expected to grow over 96 trillion dollars by 2023. So, with this new entrance, PayPal has opportunity to secure spot.
  • The demand for e-commerce is becoming increasingly high and plays an important role in the Chinese financial market. The acquisition makes it benefitting for PayPal, as the number of mobile payment users is expected to increase massively and reach 956 million by 2023.

Though China’s payments market is led by local players, including ewallet providers like Alipay and WeChat Pay on the mobile side, there is still plenty of room for it to grow which would benefit PayPal.


 

 

Banner
Related Posts

Uber Launches a Financial Product Known as Uber Money

November 28, 2019

November 28, 2019

  Uber, the ride company has announced a new expansion into a financial product which includes a digital wallet and...

Hollaport Launches in Lagos, Announces its Plan to Deepen Financial Inclusion

July 12, 2019

July 12, 2019

Kabiru Rabiu of BUA Group Launches Hollaport App Kabiru Rabiu, Group Executive Director of Bua Group, a leading Nigerian conglomerate...

Paga, Nigeria’s Mobile Money Operator Crosses 1.5 Trillion Naira in Transaction

August 12, 2019

August 12, 2019 1

Paga, Nigeria’s Mobile Money Operator Crosses 1.5 Trillion Naira in Transaction Value Earlier today, the CEO of Paga, Nigeria’s foremost...

JumiaPay: a fintech platform for payments, loans & ticketing

September 5, 2019

September 5, 2019

  Jumia, an e-commerce platform for Africa backed by MTN and Rocket Internet has introduced new features on JumiaPay. The...

MOMO, the mobile money service, launched by MTN

September 5, 2019

September 5, 2019 2

On September 29th, 2019, MTN launched its mobile money business MoMo, in Hilton Abuja, Nigeria. The mobile money will allow...

PayStack Introduces USD Payouts into Zenith Banks  

December 11, 2019

December 11, 2019 1

Table Of ContentsIntroduction: What’s USDHow Paystack USD settlements works?  Introduction:  PayStack introduced USD settlements which allow Paystack merchants to list...

GONA Raises Multi-Million Dollar Investment in Nigeria

August 19, 2019

August 19, 2019

What’s GONA? Gona is a payment platform that enables seamless and cashless payment in public buses. The problem Gona is...

MTN in a Partnership with Ericsson has launched an Open API platform in Ghana

October 24, 2019

October 24, 2019

  Introduction MTN mobile money fondly known as MOMO has expanded to Ghana. The open API platform launched is to...

Paga Announces a Partnership with Visa

March 18, 2020

March 18, 2020

Paga has partnered with Visa to provide secure and convenient mobile payments solutions. The collaboration will enable Paga and Visa...

PalmPay raises $40m from TECNO mobile, will be preinstalled on 20m phones in 2020

November 14, 2019

November 14, 2019

PalmPay raises $40m from TECNO mobile, will be preinstalled on 20m phones in 2020 Nigeria is one of the countries...

SafriCom has partnered with Ria Money Transfer to Improve International Money Transfers through M-Pesa

January 31, 2020

January 31, 2020

Safaricom has partnered with Ria Money Transfer, to empower more than 26 million M-PESA customers to receive international money transfers...

Five Online Payment Platforms in Nigeria and How to Use Them

April 5, 2019

April 5, 2019 3

Table Of ContentsIntroduction: What’s USDHow Paystack USD settlements works?I would be writing on Five Online Payment Platforms in Nigeria and...

Carbon, formerly Paylater now charges One Percent Transaction fee.

August 25, 2019

August 25, 2019 1

  Introduction Carbon, the lending platform formerly known as paylater started an app which not only allows one to borrow...

PesaLink, Kenya’s Payment System

October 28, 2019

October 28, 2019

  What is PesaLink? Pesalink is a payment system launched by the Kenya Bankers Association (KBA). This is a digital...

 FlutterWave:  Creating Financial Accessibility With Digital Payment Solutions

September 27, 2019

September 27, 2019

Table Of ContentsIntroduction: What’s USDHow Paystack USD settlements works?I would be writing on Five Online Payment Platforms in Nigeria and...

Comments
Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.