PayPal Becomes First Foreign Provider to Offer Online Payments in China
The People’s Bank of China has approved PayPal’s application to acquire a mobile and online payment platform in China. According to a statement from GoPay, PayPal now holds a 70% equity state in the company.
This approval makes PayPal the first foreign company with the ability to offer online payment services in China. PayPal’s CEO Dan Schulman said in a statement, “We look forward to partnering with China’s financial institutions and technology platforms, providing a more comprehensive set of payment solutions to businesses and consumers, both in China and globally.”
China has over $200 trillion in online transactions each year, creating a substantial opportunity for PayPal moving forward. However, the road to success may not come easy. Local providers like AliPay and WeChatPay have already established a strong brand following in the country, much like Apple Pay and Samsung Pay have in America. Nevertheless, mobile payments are 11 times more popular in China than they are in the United States, which leaves plenty of room for future growth.
The People’s Bank of China announced last year they would be opening the doors for foreign payment providers. Since then, Alipay joined forces with several mobile wallets in the European Union to create a universal payment code for mobile wallets. This technology was mostly designed for Chinese travelers in Europe, but there may be a chance to provide this service for future tourists visiting China.