Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

LATEST
Baidu Search, Sina Weibo on ‘Secret List’ of Chinese Apps Banned in India’s Latest Purge
Trending in China: Choosing a College Major - For Love or Money?
Evergrande Health Forges Ahead With Six New Electric Vehicles
Trending in China: How Cute Rabbit Ears Are On the Frontline in Fight Between Delivery Firms
Chinese Company Files Lawsuit Against Apple’s Siri for Patent Infringement Worth Billions
China Home to Six of the World’s Top 10 Unicorns, Hurun Report Says
Trending in China: Can Music Streamers Help Users’ Depression?
Core Parts of China’s Beidou Satellite System ‘100% Made in China’
Trending in China: Xiaomi CEO’s Shows How Best To Harness China’s Social Media Humor for Serious Business
Apple Takes Down Over 30,000 Apps from China Store Amid Government Crackdown
Chinese Chipmaker SMIC to Establish Joint Venture for Wafer Production
Microsoft Said Plan to Acquire TikTok Will Continue
Uber Abandons Plan to Move Regional Headquarters to Hong Kong
Trending in China: Undergraduate Degree in Housekeeping — Valuable Asset or Waste of Resources?
Huawei and Apple Shine in China’s Smartphone Market During Second Quarter
Video Streamer iQiyi Eyeing Southeast Asian, Middle East Expansion, Executive Says
Lawson Expands in China With Prefab Convenience Stores
TikTok Undergoing U.S. Investment Review, Treasury Secretary Says
Chinese Community E-commerce Firm Nice Tuan Nets $80 Million in Third Funding in 2020
Trending in China: Shanghai Film Festival Rekindles Childhood Memories with Outdoor Screenings
PayPal Acquires 70% of Gopay to Strengthen China E-Payment Push

By Yang Ge / Dec 20, 2019 01:41 PM / Finance

Photo: VCG

Photo: VCG

Financial services giant PayPal has moved one step closer in the race to become the first foreign firm offering domestic electronic payments in China after the U.S. company said it concluded the purchase of 70% of Gopay, a Chinese provider of electronic payment services.

While no value was given for the purchase, which was first announced three months ago, the deal is hugely significant because it makes PayPal the first foreign-owned company that will be able to officially process electronic payments in China’s local currency, the yuan.

The deal marks an inflection point in China’s journey to open its financial services to foreign investment in the two decades since it joined the WTO. In 2012, the U.S. won a dispute with China at the WTO after filing a complaint that the Asian nation was opening its markets too slowly.

In the seven years since that ruling, homegrown giants Alipay and Tencent’s WeChat payment service have come to dominate the lucrative market. State-owned UnionPay also operates a rival network used throughout the country.

MasterCard, Visa and American Express are pursing similar goals to PayPal. American Express is the furthest down the line, after receiving permission to operate in China a year ago.

Earlier this year, a source told Caixin that MasterCard had agreed to form a joint venture with China’s newly launched online clearinghouse Nets Union Clearing. No official announcement has yet been made.

Read the full story on Caixin Global later today.

Contact reporter Yang Ge (geyang@caixin.com)

Related: PayPal at Last Obtains China Digital Payment License


Share this article
Open WeChat and scan the QR code