U.S. digital money transfer platform PayPal Holdings Inc(PYPL.O) has obtained approval from China’s central bank to buy a 70% stake in Gopay Information Technology. This will make PayPal the first foreign firm to enter China’s payment services market. Gopay has the capabilities for mobile, online, and cross-border yuan payment services. China’s central bank had announced last year that it was opening the country’s domestic market to foreign third-party electronic payment firms to promote competition in the retail payments industry.
This move by China’s central bank shows the growing market for cross-border transactions and mobile payments. As China opens up their domestic market, we will continue to see similar acquisitions and partnerships.