Digital payments firm PayPal has closed the acquisition of a 70% stake in Chinese payments company Guofubao Information Technology (GoPay).
Financial details of the transaction were not disclosed.
GoPay holds payment business licence in China. The company offers online payment services to more than 10,000 merchants across the Czech Republic, Slovakia, Poland and Hungary.
It acts as a gateway for payments, supporting card and bank transactions, as well as digital payments such as Bitcoin. Furthermore, GoPay supports foreign currencies.
PayPal’s acquisition of GoPay was approved by the People’s Bank of China in September this year.
The deal makes PayPal the first international payments platform with a licence to offer online services in the country. Currently, the company offers financial services to 300 million consumers and merchants in over 200 markets.
PayPal president and CEO Dan Schulman said: “We’re pleased to complete this historic transaction, which enables us to broaden our participation in such a dynamic market.
“This important step will allow us to be a stronger partner to Chinese financial institutions and technology platforms. We look forward to contributing to the growth of China’s e-commerce and payments ecosystem.”
Last month, PayPal signed an agreement to acquire shopping and rewards platform Honey Science for $4bn. The Honey platform tracks prices and provides rewards, offers and alerts for consumers.
PayPal expects the deal to boost sales and customer engagement for its merchant partners.