The People’s Bank of China has approved PayPal acquisition of a 70 percent stake in Guofubao Information Technology Co. (GoPay), Ltd., a holder of a payment business license in China

PayPal becomes the first foreign payment platform to be licensed in China to provide online payment services in the country.

“We look forward to partnering with China’s financial institutions and technology platforms, providing a more comprehensive set of payment solutions to businesses and consumers, both in China and globally.”

Dan Schulman, President and CEO

With this acquisition, PayPal enters a market dominated by peer-to-peer payment firms WeChat and Alipay, which both have been expanding globally.

There is no word on how or if PayPal plans to integrate GoPay into its existing global PayPal payments services. Presumably, GoPay will continue to stay a separate entity, similar to how Venmo and Xoom are still separate from PayPal.

PayPal said the transaction is expected to close in Q4 2019. The company did not disclose financial terms of the deal with GoPay.

What do you think about PayPal’s entry to China through GoPay?

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READ MORE: PayPal money transfer service Xoom expands to 32 European countries

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