Consequently to receiving a processing license, PayPal would be able to handle domestic payments across China, where it already helps businesses and consumers with cross-border transactions.
In addition, PayPal may provide mainland Chinese consumers with its new PayPal Here card-swiping device. The company has already started offering the device in the US, Canada and Hong Kong. The device is able to swipe credit cards and scan checks. Merchants can use PayPal Here to accept payments by referencing the shopper’s name and picture.
In 2011, local operators including Alipay, an affiliate of Alibaba Group, have received license from China’s central bank to process online payments. Alipay accounted for 47 percent share of China’s internet payment market in Q4 2011, according to research company Analysys International. The same source mentioned that Tenpay, a unit of Chinese internet company Tencent, registered a market share of 21 percent. China’s e-commerce market has jumped 66 percent, reaching USD 121 billion in 2011, a Barclays Capital study has unveiled.
PayPal has also revealed plans to expand in India. According to a company representative, PayPal intents to open a business unit in India in 2013 in order to enter the domestic payments market. The e-commerce sector in India is expected to jump by 47 percent in 2012, reaching more than USD 9.2 billion, according to the industry group Internet and Mobile Association of India. Currently, PayPal has offices in six Asian markets including China, Hong Kong, South Korea and Singapore.
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