PayPal (Nasdaq: PYPL) has intensified its expansion efforts in mainland China with the launch of PayPal Complete Payments, an “all-in-one platform that integrates a range of customised products and solutions to support Chinese merchants in selling globally.”With this new China-specific platform, the American payments giant aims to streamline payment and receivables processes for businesses of all sizes in China.
A Rapidly Growing Industry
The platform is looking to capture China’s rapidly growing cross-border e-commerce sector. According to data released by the country’s State Council, China’s cross-border e-commerce import-export volume reached RMB 2.38 trillion (US$331 billion) in 2023, a 15.6 percent annual increase. The growth in exports was the driving force, with an increase of 19.6 percent.
“As of today, PayPal has facilitated the global expansion of many Chinese businesses,” said Hannah Qiu, Senior Vice President and China CEO at PayPal. “With PayPal’s unique two-sided network and technological advantages, we will continue to enhance and optimise the system and product capabilities of PayPal China, empowering Chinese merchants to expand their businesses globally through more diversified cross-border payment solutions.”
PayPal had approximately 429 million active accounts by the end of the second quarter of 2024. Net revenue for the three months increased by 8 percent to $7.9 billion, exceeding market expectations.
The platform also handled $416.8 billion in payment volume during that period, marking an 11 percent increase compared to the same quarter the previous year.
Bridging the Gap Between Global Consumers and Chinese Merchants
Currently, PayPal’s global and China management teams have already engaged with over 700 merchants across the country, along with partners.
The payment giant further detailed that it will “gradually introduce new features” to the newly launched China-specific platform to fully support local businesses in cross-border transactions.
According to PayPal, Chinese merchants can easily reach over 400 million active PayPal users and billions of international consumers who use card and APM payments.
The new platform has already added a solution for cross-border RMB transactions, offering products for Chinese merchants, including RMB Transfer and Vendor Payouts, as well as risk analysis and fraud protection tools based on machine learning, AI, and big data.
“This launch marks a significant milestone in PayPal’s mission to revolutionise commerce globally, bridging Chinese businesses with consumers around the world in a more efficient and transparent way,” said Suzan Kereere, President of Global Markets at PayPal.
This article was written by Arnab Shome at www.financemagnates.com.
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