PayPal Gains Entry Into China Market Through Local Acquisition

China’s central bank has granted PayPal Holdings Inc. approval to buy a 70% stake in a Chinese payment company, allowing the American firm to become the first foreign player to operate in the nation’s payment service market.

PayPal’s acquisition target -- Gopay Information Technology Co. -- has obtained licenses for online, mobile and cross-border yuan payment services, according to a statement on the Chinese firm’s website. PayPal will make the acquisition through a Chinese unit.

The approval for PayPal’s acquisition comes amid concern over the potential financial decoupling of the world’s two largest economies and reports that the U.S. is ...