PayPal completes GoPay acquisition, allowing the payments platform to enter China

CALIFORNIA: PayPal announced that the company has completed its deal to buy 70% equity stake in Guofubao Information Technology Co. Ltd. (GoPay). This acquisition is making PayPal the first foreign payment platform that will deliver online payment services in China. The transaction had originally been announced on September 30 by the People's Bank of China and has now been closed.[SS1]  Guofubao Information Technology Co. Ltd. has license for both online as well as mobile transactions. The company also provides payment products for numerous industries which include categories like e-commerce, tourism, cross-border commerce and others. Just like PayPal, GoPay allows merchants to receive payments on their websites when prospective customers are looking for online shopping and making payment.

President and Chief Executive Officer of PayPal stated that, “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,” he added.

President and Chief Executive of PayPal further added, “The deal and the license to operate in China enables us to expand upon our relationships with existing partners like China Union Pay and AliExpress and forge new partnerships with China’s financial institutions and technology platforms, allowing us to provide a comprehensive set of differentiated payment solutions to businesses and consumers in China and globally. Within eCommerce, there are roughly 500 million online shoppers in China and they are going to drive something like $ 2 trillion in online sales this year, which is more than 50 percent of global online retail.” He further said that PayPal will be able to serve merchants who want to sell their offerings cross-border but take payments back into China and PayPal will also serve multinational companies doing business in China.

According to TechSci Research, Though the local players including eWallet providers like WeChat Pay and AliPay are leading China’s payment market, there’s a room for PayPal to grow in a market where the digital payments in a year are counted in trillions of dollars. The mobile payments market in China is anticipated to grow at a CAGR of 22% from USD30 trillion in 2018 to USD96.73 trillion in 2023, which is driven by surging demand for e-commerce in the country. In addition to this, total number of active mobile payment customers is projected to cross 950 million by the end of 2023. Therefore, this acquisition is making PayPal the principle international rate platform to present on-line rate products and services in China and thereby contributing to the development of China’s e-commerce and payments ecosystem.

According to the report published by TechSci Research, “Global Real Time Payment Market By Nature of Payment (P2P, P2B, B2P), By Component (Solutions, Services), By Deployment Mode (On-Premise, Cloud), By End User (BFSI, IT & Telecommunication, Retail & Ecommerce, Government, Energy & Utilities, Others), By Company, By Region, Competition, Forecast & Opportunities, 2024”, the global real time payment market is expected to grow at a robust CAGR of around 30% during the forecast period. Real time payments are digital or electronic payment solutions that enable real time or immediate clearing of transactions and facilitate crediting of funds. Real time payments ease the process of transactions such as sending and receiving money. The important steps in real time payment procedure include initiation, validation, processing, transmission, clearance, and customer alerts. Increasing proliferation of mobile phones, adoption of cloud-based services and increasing customer demands for instant payment transfers and settlements are the key factors driving the global real time payment market.

According to another report published by TechSci Research, “India Digital Banking Platforms Market By Banking Type (Retail Banking & Corporate Banking), By Deployment Mode (On-premises & Cloud), By Banking Mode (Online Banking & Mobile Banking), Competition, Forecast & Opportunities, 2024,” the India digital banking platforms market is expected to grow at a formidable rate during the forecast period. Digital banking platform is referred as an omnichannel or multichannel solution of personal banking services. The growth of the India digital banking platforms market can be majorly attributed to the rising demand among banks to provide enhanced customer experience coupled with the growing application of cloud-based platforms to acquire higher scalability experience. Moreover, an advanced digital banking platform is highly adaptable which permits the integration of many different banking services together in a great and interactive user interface (UI) or customer experience manner.