PayPal keen to launch local operations in China
PayPal (PYPL) currently provides cross-border payment service in China but has yet to launch domestic operations in the country. The company has been in discussions with Chinese regulators about obtaining licenses that would allow it to run payment operations in the country, according to TechNode.
Despite not having a local presence in China’s digital payment market, PayPal has found ways in. Last year, the company partnered with Baidu (BIDU) to enable Chinese consumers who use Baidu’s electronic wallet to buy from overseas vendors that accept PayPal. It also has a partnership with Alibaba (BABA) on cross-border payments.
Chinese market could support multiple players
Alibaba’s Alipay and Tencent’s (TCEHY) WeChat Pay currently dominate the mobile payment market in China. Although the market is becoming crowded, PayPal CEO Dan Schulman said during an interview with Bloomberg TV early this month that China’s digital payment market is so big that he believes it can support several players.
Frost & Sullivan estimates that China will have 956 million active mobile payment users by 2023, up from 562 million in 2017. China’s mobile payment market was valued at $29.9 trillion in 2017 and is projected to grow to $96.7 trillion by 2023. PayPal would like to speed up its expansion in China, where its domestic rival, Square (SQ), doesn’t have a presence.