Als the first foreign company to completely take over a payment service in China. The American group acquired the 30 percent of GoPay that was not yet in its hands at the end of the year, according to shareholder documents. The payment service market in China is highly competitive, but so far only domestic providers such as AliPay from the Ant Group or WeChat Pay from Tencent have been bustling there.
GoPay’s full takeover comes at a time when the Chinese government is tightening the reins on regulation in the financial sector following the abrupt halt of the Ant IPO. Among other things, competition law investigations against Alibaba were initiated and Ant was stopped to reorganize the company.
It is not known what amount PayPal put on the table. The online payment service bought 70 percent of GoPay a good year ago, making it the first foreign company with a license to offer online payment services in the People’s Republic.
PayPal didn’t want to comment. In 2019, the American company announced that it would initially focus on cross-border payments for Chinese traders and private individuals in China – an area in which many providers from the People’s Republic are already active.