PayPal becomes first overseas firm found in China with total ownership of payments business
14 January, 2021
PayPal Holding Inc has become the first international operator with 100per cent control of a repayment platform on China, according to Chinese federal government info, as the U.S. fintech giant eye a larger foothold in a booming industry for online payments.
PayPal acquired the 30per cent stake it generally does not already own found in China's GoPay, formally referred to as Guofubao IT Co., on Dec. 31, 2020, regarding to shareholder info from the National Business Credit Information Publicity System.
Financial details weren't disclosed on the info. The stake get came a time after PayPal bought a 70per cent stake in GoPay for an undisclosed volume，then becoming the initially foreign company licensed to supply online payment solutions in China.
PayPal declined to comment.
In taking complete control of among the more compact players in the world's greatest payment industry, PayPal will contend with domestic payments giants Alipay, owned by Alibaba-affiliated Ant Group, and WeChat Fork out, owned by Tencent Holdings Ltd, as China fully opens up its monetary sector.
The stake purchase also comes amid Beijing's antimonopoly campaign against Alibaba Group Holding Ltd and other Internet companies.
Previous August, PayPal appointed Hannah Qiu as brain of China business, in charge of formulating long-term strategy on the world's second-most important economy. Qiu was a ex - executive at insurer Ping An Group's fintech product OneConnect, regarding to PayPal's website.
PayPal said in its 2019 total annual report its first focus found in China is to supply cross-border payment answers to Chinese merchants and customers, linking the country's commerce ecosystem to PayPal's global network.
But in that area, PayPal also faces the prospect of competition from Chinese corporations.
Bill Deng, Chief Executive and co-founder of XTransfer, a Shanghai-based payment system start-up that facilitates cross-border funds transfers for Chinese merchants, had not been shy about his ambitions to emulate PayPal.
"We see ourselves as China's PayPal in cross-border businesses," Deng told Reuters.
Source: www.channelnewsasia.com
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