PayPal Holdings Inc (NASDAQ:PYPL) intends to launch its cross-border payment services in China. However, the company won’t pose any form of threat to the local businesses.
Paypal seems rather aggressive in its business undertakings. For example, it happens to be the only foreign firm that can confidently claim 100% ownership of China’s payment platform.
Unveiling the domestic wallet
For PayPal, the China CEO, Hannah Qiu, was the first official to speak out to journalists regarding a domestic wallet set up. The official added that their business in the country wouldn’t impact WeChat Pay and Alipay negatively, and thus there is no cause for alarm among the local businesses. Paypal remains focused on cross-border payments in China, according to Qiu.
Paypal has, over the years, embraced cross-border transactions, claiming that a significant chunk of its value comes from overseas deals. The company’s overseas market consists of about 20 million corporate users and 377 million individual users. Paypal seeks to boost the number in the future.
Paypal wants the local businesses to relax, outlining that it seeks to co-operate with them for the common good. Most local companies reserved fears that Paypal would pose direct competition to their business, but Paypal has dismissed such claims.
Qiu confirms that his company has a massive network of users and seeks to establish a resourceful bridge. It will focus on moving great Chinese products overseas and channeling outstanding overseas products to the country.
WeChat and Alipay businesses to remain safe
WeChat and Alipay happen to be the big names in China’s domestic mobile payments market. The two have focused on simplifying matters for customers who want to pay in stores or online in the country. Users rely on their services in most of the physical stores. The process involves the merchants scanning the users’ barcodes to take payments.
Qiu confirmed that Paypal had already developed deep business ties with some of the local companies. However, the official declined to mention those company names. PayPal’s confirmation that it won’t pose direct competition to the local companies pulls along as a great relief for the local companies that reserved fears over its dominance.