This will allow PayPal to become one of the first international companies to gain a payments licence in China. PayPal, through one of its local China-based subsidiaries called Yinbaobao, will acquire a 70% stake in GoPay, according to a statement on GoPay’s website. The deal is expected to close in Q4 2019.

GoPay, officially known as Guofubao Information Technology Co., was set up in 2011 as a joint venture between the China International Commerce Center (CIECC) and HNA Retailing Holding, a subsidiary of the Chinese conglomerate HNA Group. This announcement, while a milestone moment for PayPal, doesn’t come as a complete surprise. The PBOC previously revealed that it would open up the domestic market to foreign payments companies in order to support competition. This will allow PayPal to become one of the first international companies to gain a payments licence in China. PayPal, through one of its local China-based subsidiaries called Yinbaobao, will acquire a 70% stake in GoPay, according to a statement on GoPay’s website.

The deal is expected to close in Q4 2019. GoPay, officially known as Guofubao Information Technology Co., was set up in 2011 as a joint venture between the China International Commerce Center (CIECC) and HNA Retailing Holding, a subsidiary of the Chinese conglomerate HNA Group. This announcement, while a milestone moment for PayPal, doesn’t come as a complete surprise. The PBOC previously revealed that it would open up the domestic market to foreign payments companies in order to support competition..