Paypal is now the first foreign firm with full ownership of payment business in China. With the full acquisition of Guofubao Information Technology Co, Paypal becomes the first foreign company to provide online payment service in China. Paypal will compete with Alipay and WeChat Pay in the future.
Paypal: 100% control of a payment platform in China
A report from Reuters earlier today revealed that Paypal has acquired the remaining 30% stake in China’s GoPay, Guofubao Information Technology Co., back on December 31, 2020. With the 70% of the stake that Paypal bought from the previous year, Paypal now owns 100% control of the payment platform. Paypal’s success becomes a groundbreaking moment for international firms attempting to jump into China’s market. Though, the company still remains silent on the matter.
Paypal: ready to compete with domestic payments giants
China’s domestic payment industry is big. Alibaba-affiliated Ant Group, Alipay and Tencent Holdings’ WeChat Pay are some of the biggest players in China. These two companies will be Paypal’s strongest contenders in its business in China. Though, Paypal might be in the upper hand due to Beijing’s antimonopoly campaign against Alibaba Group and other Internet companies.
Hannah Qiu, the former executive at insurer Ping An Group’s OneConnect, will further move into Paypal as its head of China business. Qiu will be responsible for coming up with long-term strategies for the business in China. Accordingly, Paypal is aiming to provide cross-border payment solutions to Chinese users. Paypal’s global network will also help connect local merchants and consumers to the global market.
Read also: Thanks Paypal! Bitcoin Investors Got Richer Last Night
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