PayPal has become the first foreign company to control 100% of its payment platform in China, as it looks to expand its business further in the booming market for online payment solutions.
On December 31, PayPal acquired a 30% stake in the Chinese company GoPay known as Guofobao Information Technology, but the financial details of the acquisition were not disclosed, the stake purchase came a year after it purchased a 70% stake in GoPay for an undisclosed amount, and now it has become the first foreign company licensed to provide online payment services in China.
With the company fully opening up to China’s financial sector, PayPal will compete with domestic payment services giant Alipay, owned by Alibaba’s Ant Group, and Tencent Holdings’ WeChat Pay, the company’s acquisition of the latest stake in GoPay comes amid a campaign by the Beijing government against the Alibaba antitrust group and several other electronic companies.
Hannah Qiu was appointed last August as President of PayPal’s China business, responsible for shaping the company’s long-term strategies for operating in the world’s second largest economy.
A former CEO of Ping An Group’s OneConnect fintech unit, Qiu said in its 2019 annual report that its primary goal in China is to provide international payments solutions to Chinese merchants and consumers by connecting China’s commerce ecosystem to PayPal’s global network.