PayPal’s Breakthrough in China: Financial Times

After acquiring a 70 percent stake of GoPay, a small Chinese online payment company and receiving approval from the People’s Bank of China, PayPal is the first foreign company to win Chinese payments license. Visa and Mastercard are waiting for license approvals. PayPal will face a huge market opportunity since China’s third-party online payment has risen to ¥277 trillion in 2018. And PayPal’s cross-border payment platform among more than 100 currencies offer an advantage for meeting increasing Chinese demand of international commerce and travel compared to RMB-based WeChat and Alipay. Competition is intense. A Financial Times article suggests that in China, the WeChat-Alipay oligopoly made the payment fee rate much lower than the international average while in the global market, Alibaba, Walmart, Google, Amazon and Facebook are also playing catchup. The United States has pushed for greater access to China’s markets. – YaleGlobal

PayPal’s Breakthrough in China: Financial Times

PayPal receives first payment license in China, getting a head start on Visa and Mastercard in China’s huge payment market
Yuan Yang
Friday, October 4, 2019

Read the article from Financial Times about PayPal obtaining a license in China.

Yuan Yang is China tech correspondent for the Financial Times. She is co-founder of the campaign, Rethinking Economics, which calls for a more relevant curriculum that reflects real-world events.http://www.gov.cn/xinwen/2019-03/20/content_5375401.htm

Mobile Paynents in China went from 9.64 trillion renminbi in 2013 to 277.39 trillion in 2018

(Source: China)

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