In China, WeChat and Alipay have almost monopolized the mobile payment market. But globally, PayPal has no rivals. As you know, the latter will also enter the Chinese market. However, their positioning is different from WeChat and Alipay.
Today, Qiu Han, CEO of PayPal China stated that the group will mainly focus on cross-border business in China. So it won’t compete with Alipay and WeChat Pay.
He also added that PayPal has more than 300 million individual customers, more than 20 million merchants, and a very rich network of merchants and individual customers.
The main business of PayPal in China at the moment is to help the local small and medium-sized sellers sell goods overseas more efficiently and conveniently. Plus, they want to help Chinese sellers get the money back.
Everything Started Two Years Ago
A couple of years ago, The People’s Bank of China has approved PayPal Information Technologies Co., Ltd.’s acquisition of a 70% equity interest in Guofubao Information Technology Co. (GoPay), Ltd., a holder of a payment business license in the country. So it became the actual controller of Guofubao and entered the Chinese payment service market.
In January 2021, the shareholders of Guofubao Information Technology Co., Ltd. have changed.
Guofutong Information Technology Development Co., Ltd., which previously held 30% of its shares, opted to withdraw. So Yinbao Information Technology (Shanghai) Co., Ltd. began indirectly controlling 100% of Guofubao.
Bank of America is affiliated with PayPal. So this also means that PayPal will enter the Chinese payment market.
PayPal was founded by Musk and others. As the world’s leading third-party payment company, PayPal currently has a business scope covering more than 200 countries and regions around the world, and can support more than 100 currency transactions worldwide. And though there are serious reasons for fears, PayPal’s entry into the Chinese market will tighten the competition.