Do You Think Paypal Has a Market in China

As a listed company of Nasdaq, Paypal is also the world’s leading third-party payment enterprise, covering more than 200 countries and regions around the world, with more than 286 million active payment accounts and supporting transactions in more than 100 currencies around the world.This news means that the global payment giant has officially entered the domestic market.Today, I want to talk about how this news will affect the situation of domestic third-party payment industry.Is there an opportunity for Paypal in China?




In the fourth quarter of 2018, China’s third-party payment is basically an oligopoly of alipay and tencent finance, which together account for more than 90% of the market.In fact, it is not hard to imagine that the core driving force of mobile payment in China comes from e-commerce and social platforms, such as taobao and WeChat Lucky Money, and these platforms have certain exclusivity. Therefore, relying on the advantages of platforms, it is easy to build a moat of its own and compress the space of other third-party payment enterprises.

At present, the market share of mobile payment in the domestic third-party payment market is getting higher and higher, which means the trend of offline development cannot be stopped. However, paypal, which has no mass base, should be more difficult to develop in this field. It can be seen that there is not much room for paypal to survive in China’s domestic third-party payment market under the current situation.

Cross-border payment is the breakthrough?

So where is paypal’s breakthrough in China?Perhaps the answer lies in cross-border payments.In 2018, 20% of paypal’s revenue came from cross-border business, and 20% of cross-border business came from the Chinese market, which shows the importance of the Chinese market in its overall business.

By the end of 2018, cross-border e-commerce had accounted for nearly one-third of total imports and exports.The growth rate has also maintained double-digit growth.In fact, there is another recent event that deserves our attention, which is alibaba’s $2 billion acquisition of netease koala, and alibaba’s integration of cross-border e-commerce, which shows that the giants attach great importance to this area.


It can be seen that the cross-border payment industry should be in a relatively prosperous stage, and the consumption ability of the customer group is relatively stronger.In the field of cross-border payment, paypal undoubtedly has its own advantages. It entered the field of international payment earlier than Chinese companies and has more experience and bigger market.

Paypal is still optimistic about the development of China’s third-party payment market.