PayPal, which has just spun off from PayPal and is currently evaluated at USD 50 billion, is now launching a new service in China in collaboration with UnionPay, which aims at facilitating cross-border ecommerce for Chinese shoppers.
After failing its plan to become a major payment provider in China due to the so far unbeatable competition of Alibaba, PayPal is now seeking to get a bigger slice of the cake by actively cooperating with the UnionPay, China’s bank card issuer.
The new system, called China Connect, will enable Mainland shoppers to purchase goods and services directly from foreign merchants with their UnionPay card thanks to the connection powered by Paypal. In the past Chinese shoppers had to either obtain a Visa/Mastercard bank card, purchase on third-party platforms such as Taobao, or buy through the so-called DaiGou, which translates loosely as “purchasing agent”.
The move has been announced by Matthew Lee, Vice President and General Manager, Paypal North Asia, who is aware of the scale and the potential of the Chinese cross-border ecommerce, which is projected to hit 1,1 trillion USD by 2020.
Chinese buyers are well known for their desire for foreign and especially American product, and China Connect could be the answer to their needs.
Contact TLG eCommerce Agency to know more about China cross-border eCommerce.