PayPal becomes 1st third-party payment platform with 100% foreign ownership in China
PayPal Photo: IC
US digital money transfer platform PayPal has become the first third-party payment platform with 100 percent foreign ownership in China following its purchase of additional shares of the domestic payment firm GoPay.
PayPal Information Technology (Shanghai)'s equity stake in GoPay increased from 70 percent to 100 percent, media reports said Monday, citing data from company information website Tianyancha. Cofortune Information Technology Co gave up its 30 percent stake in GoPay.
PayPal has made moves in recent years to tap into the vast digital payment market in China.
It completed its acquisition of a 70 percent equity stake in GoPay in December 2019, making PayPal the first foreign payment platform to provide online payment services in China. The transaction was approved by the People's Bank of China (PBC), the country's central bank in September that year.
As a NASDAQ-listed company and the world's leading third-party payment platform, PayPal covers more than 200 countries and regions around the world, with more than 361 million active payment accounts and supports more than 100 currency transactions worldwide.
Beijing-headquartered GoPay, founded in 2011, has licenses for mobile, online and cross-border yuan payment services.
In 2018, China's central bank announced that it would open the market to foreign third-party digital payment firms, a move intended to promote competition in the retail payments industry. US payment and credit card firms have been vying for the opportunity to enter the Chinese market.
In June last year, American Express announced that its China-based joint-venture Express Company had received approval from PBC for a network clearing license, becoming the first foreign payment network to be licensed to clear transactions in Chinese currency, the yuan, in the Chinese mainland.
Separately, Mastercard Inc won approval in February 2020 to set up a bank card clearing business in China.
China is ahead of other nations in the use of mobile payments with about 47 percent of mobile users using mobile and digital wallets.
In 2018, the scale of China's third-party mobile payment transactions was 167.83 trillion yuan ($25.9 trillion), soaring by 59.7 percent year-on-year, according to reports. As expected, third-party mobile payments will enjoy higher market share than mobile banking by 2021 and occupy 58.1 percent by 2026, according to an industry report by Reportlinker.
FAQs
US digital money transfer platform PayPal has become the first third-party payment platform with 100 percent foreign ownership in China following its purchase of additional shares of the domestic payment firm GoPay.
Is PayPal owned by a Chinese company? ›
PayPal Holdings, Inc. is an American multinational financial technology company operating an online payments system in the majority of countries that support online money transfers; it serves as an electronic alternative to traditional paper methods such as checks and money orders.
Can foreigners use PayPal in China? ›
Both Chinese citizens and non-Chinese citizens (such as foreigners living or traveling in China) alike can sign up for a PayPal individual account and use it to make purchases from overseas, and receive & send payments throughout the world².
Is PayPal forbidden in China? ›
Yes, you can use Paypal in China. But you need to have a Chinese bank account to connect to the Paypal account. If you need to make the payment through Paypal, you can have a Chinese credit card for the paypal.
When did PayPal enter China? ›
The history of PayPal in China started in December 2019, when the American platform bought 70% of the total equity stakes of GoPay, formally becoming the first foreign payment platform in China. Only two years later, in 2021, the company completed its acquisition.
Why is PayPal all in Chinese? ›
Don't panic! The problem is not with your eCommerce App. Sometimes, if a shopper visits a foreign website or purchases something from another country, a cookie will be left on their machine. This cookie can tell the browser to load particular webpages in that foreign language the next time they are viewed.
Who actually owns PayPal? ›
After watching PayPal become the premier choice of Internet auction shoppers, online marketplace giant eBay acquired PayPal for $1.5 billion in October 2002.
Can I use PayPal to pay in China? ›
This allowed PayPal to become the first foreign payment platform available to provide online payment services in China. PayPal is one of the most recognized payment options accessible in online stores worldwide. PayPal is a widely recognized payment option available in online stores worldwide.
Does Zelle work in China? ›
Can I send money through Zelle internationally? Zelle is only available for customers with a US bank account and US registered mobile number. That means it's not an option for sending international payments to friends and family overseas. Read on for some international Zelle alternatives.
Which country uses PayPal the most? ›
The World Population Review tabulated that the United States has the most PayPal users with 278.10 million or 38.87%. This is followed by Germany, which has 137.70 million users, or 19.25%, and the United Kingdom with 56.20 million users, or 7.85%.
These are Afghanistan, Bangladesh, Cameroon, Central African Republic, Cote D'Ivoire (Ivory Coast), Paraguay, Saint Lucia, South Sudan, Sudan, Syria, Democratic People's Republic of Korea (North Korea), Equatorial Guinea, Gabon, Ghana, Haiti, Iran, Iraq, Lebanon, Liberia, Libya, Monaco, Moldova, Montenegro, Myanmar, ...
Can I use PayPal with a Chinese bank account? ›
You can add a bank account from the country where your PayPal account is registered or from the banks located in the US.
How do rich Chinese get money out of China? ›
One popular technique is known as “smurfing.” It involves recruiting people on the mainland who haven't used their legitimate remittance quotas of $50,000. By using many people, the agencies can then use their bank accounts and small individual allowances to funnel large amounts of money outside the country.
Is venmo owned by China? ›
Venmo is an American mobile payment service founded in 2009 and owned by PayPal since 2013. Venmo is aimed at users who wish to split their bills. Account holders can transfer funds to others via a mobile phone app; both the sender and receiver must live in the United States.
What is the equivalent of PayPal in China? ›
Alipay and PayPal are two of the most well-known third-party mobile and online payment platforms in the world. Alipay meets the payment needs of the majority of users, living in China, including foreigners, in all money transaction scenarios in China.
How do I get my PayPal out of Chinese? ›
Here's how to change the language:
- Go to Settings.
- Click Edit beside "Language".
- Select your preferred language.
Elon Musk cofounded the electronic payment firm PayPal, and in 2002 he founded SpaceX, a company that makes rockets and spacecraft. He was a major early funder of Tesla, which makes electric cars and batteries, and became its chief executive officer in 2008. He cofounded Neuralink, a neurotechnology company, in 2016.
Is it safe to use PayPal? ›
Is PayPal safe for sellers? PayPal is considered one of the safest ways to receive money online. All PayPal transactions are protected by advanced data encryption. PayPal also offers seller protection protocols to prevent fraudulent activities and make the platform safe for sellers.
What is Chinese PayPal? ›
PayPal Payments (Beijing) Co., Ltd. (“ PPCN”) is a non-bank payment institution holding the Payment Business License issued by the People's Bank of China. As PayPal's wholly owned subsidiary in China, PayPal Payments (Beijing) Co., Ltd.is licensed to use the “PayPal” trademark in its payment services.
