May 13, 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

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...

Opay Expands as it launches tricycle hailing service, OTrike in Nigeria

August 25, 2019

August 25, 2019 1

  Introduction The opera company, the Chinese-backed startup is giving other fin tech startups a clear run for their money...

Eyowo Launches a Retail Banking Tool

December 2, 2019

December 2, 2019

Eyowo, a digital bank, with the  aim  to encourage financial inclusion among every Nigerian by making banking as easy as...

M-Naria’s Three Cool Features you had no Idea about

April 30, 2019

April 30, 2019

  M-naira is the new way of making transfers across countries. Before now, if one wanted to send money from...

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...

KudiGO, a Ghaianian startup, that builds solutions for the consumer retail industry, plans expand to Nigeria .

February 1, 2020

February 1, 2020

KudiGo started operations in November 2018, providing an integrated, mobile-based retail, payments, accounting and analytics engine for the consumer retail...

Nigeria’s Paga Acquires Apposit

February 1, 2020

February 1, 2020

Paga is a multi-channel platform for users to transfer money, pay-bills, and buy things digitally. The company has 14 million...

 FlutterWave:  Creating Financial Accessibility With Digital Payment Solutions

September 27, 2019

September 27, 2019

Introduction:  Sometimes, I feel the technology is  man’s coolest invention. Digital bank is the newest rave of the now, which...

Visa partners with PalmPay to drive financial inclusion across Africa

April 26, 2019

April 26, 2019

Visa partners with PalmPay to drive financial inclusion across Africa Visa, the global payments technology company and PalmPay, a new...

How To Make Interswitch Payments Using Your Mobile Phone

April 16, 2019

April 16, 2019

How To Make Interswitch Payments Using Your Mobile PhoneMaking payments using your mobile phone can be a real headache. Trust me, I know. From USSD codes to apps and even websites, everything misbehaves at one point or the other.

Paga partners with FlutterWave, to Integrate International Payments

March 18, 2020

March 18, 2020

Paga is a Nigerian Fintech Company, that builds solutions to make it simple for consumers and businesses to access and...

Chipper -Cash Expands to Nigeria

October 22, 2019

October 22, 2019

  Introduction:  Chipper-cash, the n0-fee, cross border payment startup has expanded to Nigeria.  It is based in San Francisco, with...

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...

ORide; Nigeria’s Bike hailing Service launched by OPay

June 6, 2019

June 6, 2019 1

ORide, a bike-hailing app launched under the hub of OPay intends to make going around Lagos easier. On the average...

Using Blockchain to Enable Faster Cross Border Remittance

May 10, 2019

May 10, 2019

Using Blockchain to Enable Faster Cross Border Remittance Blockchain derived its name from how it works and the way it...

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.