Gopay Information Technology, PayPal's acquisition target, has acquired affirmation from China's central bank to sell a 70% stake to PayPal, both companies said on Monday.

 

Gopay has licenses for mobile, online and cross-border yuan payment services, the Chinese company said in its statement. PayPal will make the purchase through a subsidiary in Shanghai. No financial terms were disclosed.

 

The transaction is anticipated to close in the fourth quarter of 2019 and is based on customary closing conditions, PayPal said. Early last year, China's central bank announced that it was opening the country's domestic market to foreign third-party electronic payment firms, a move anticipated to promote competition in the retail payments industry.

 

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