PayPal is determined to apply for payment license in China

13/08/2018

PayPal, the third party payment giant, intends to expand its influence on cross-border e-commerce

 

Lu Liuliu, general manager of the business unit of PayPal China, said in an interview that four years ago, PayPal and the Chinese regulatory authorities actively discussed the application for payment licenses. “But applying for a license is still a complicated matter for a foreign company. We have always been very concerned about this matter and we have great determination.”

 

Due to the lack of payment licenses in China, Paypal is unable to conduct business in China’s domestic market. This payment platform is focused on the business of providing payment platforms for cross-border e-commerce in China, and hopes to help Chinese SMEs to provide payment convenience in overseas markets.

 

Lu Liuliu said: “21% of PayPal’s global transactions are cross-border transactions, and China is the largest market in the PayPal system for cross-border transactions. Although we are only doing cross-border transactions in China, whether it is cross-border transactions or the Chinese market, the role of PayPal in the whole system is very important. We also counted the transaction data of overseas buyers, 1 out of every 5 transactions of overseas buyers is purchased from China, so from the buyer perspective, China is a very important market. From the perspective of the market, we only do cross-border payment in China, which is also very important to our position in the global market.”

 

On August 10th, PayPal launched the SMEs customer month to help China’s small and medium-sized cross-border e-commerce companies to carry out transformation and upgrading. Since PayPal has operations in more than 200 countries around the world, it is more common for overseas users to purchase goods online using PayPal payments.

 

“Based on the cross-border e-commerce platform, China’s SMEs have become the main driving force of foreign trade in the new era. In recent years, with the continuous development of business, more cross-border SMEs have shown a trend of transition from traditional B2B to B2C. Lu Liuliu said, “PayPal will serve SMEs and promote its development as our mission.”

 

According to reports, in 2017, China’s cross-border e-commerce transactions totaled 1.1 trillion USD (7.6 trillion RMB), an increase of nearly 20%.

 

Lu Liuliu said that in July this year, PayPal took its Chinese clients on a three day business trip to India, to check out India’s payment market logistics, promotion, consumer stratification, habits, etc., “The business trip has greatly helped the clients, greatly increased their confidence in developing their business in India.”

Headquartered in the United States, PayPal was founded by Tesla CEO Elon Musk and others and then acquired by eBay. Later, it was independently operated and became a global payment giant. At present, the number of users of electronic payment platforms reaches 244 million, and its business covers more than 200 countries and regions around the world, supporting more than 100 kinds of currency payments.

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