PayPal has secured a license to provide digital payment services in China, after obtaining Beijing’s approval for its acquisition of a majority stake in a Chinese payments company.

The People’s Bank of China has approved PayPal Information Technologies’s purchase of a 70% equity stake in Guofubao Information Technology Co. (GoPay), a holder of a payment business license in China.

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Subject to customary closing conditions, the transaction is anticipated to close in the fourth quarter of this year.

PayPal president and CEO Dan Schulman said: “We are honored to become the first foreign payment platform to be licensed to provide online payment services in China.

“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.”

PayPal’s open digital payments platform allows its 286 million active account holders to connect and transact in new ways, whether they are online, on a mobile device, in an app, or in person.

Available in over 200 markets globally, the PayPal platform, including Braintree, Venmo, Xoom and iZettle, allows consumers and merchants to receive money in more than 100 currencies. It also enables them withdraw funds in 56 currencies and hold balances in their PayPal accounts in 25 currencies.

In June this year, PayPal invested in open banking platform Tink to continue its expansion across Europe.

PayPal has agreed to leverage Tink’s account aggregation technology to enhance product experiences for its customers.