PayPal strides into Asia, submitting applications to China India

News and technology information Beijing time March 20, according to foreign media reports, the U.S. E-commerce giant ebay's network payment company PayPal plan to enter the Chinese and Indian markets, which marks the company to the Asian region took a significant step.

At present, the two countries already have businesses in the use of the company's services to implement Cross-border payments. However, PayPal wants to provide its online payment services directly to the local company. "We are currently applying for a licence to provide payment services in China and we will do so in India in the future." "PayPal spokesman Dickson Seow said today. However, the company does not yet know when to obtain a license.

In both countries, China represents a larger online payment market. China has 193 million e-commerce users, according to statistics from China's Internet Network Information Center. After entering China, PayPal will face the competition of Alipay, a payment company owned by the local e-commerce giant Alibaba Group. Alibaba and ebay's joint ventures in China have been competing in Alibaba-led consumer E-commerce.

According to the Beijing market research company Analysys International Statistical data, Alipay currently has the Chinese network third-party payment market, the largest share of about 46.9%. The Third-party payment market here includes Non-bank business organizations. At the end of the fourth quarter of last year, the total turnover of China's third party payment market reached 738.6 billion yuan (about 117 billion U.S. dollars). "If PayPal goes into China's online payment market, it will become very competitive," he said. Meng, an analyst at Analysys International, said, "China's domestic payment companies have formed a climate." ”

But the company may also face difficulties in obtaining a licence from the local government to legally provide its payment services. Alibaba, which shares both Yahoo and SoftBank, was forced to split Alipay into an independent company. Because the Chinese government requires all non-financial institutions to provide network payment services must be Chinese citizens.

"This is a difficult hurdle to overcome. Mark Natkin, managing director of the Beijing Marbridge consulting firm, said. However, ebay has been very successful in other foreign markets, and its PayPal company has established a network that allows users to conduct cross-border transactions. "They have developed well outside China. But it is hard to say whether they can be so fortunate in China. He pointed out that China's competition has been very fierce.

Last year, about 17 million internet users in India were shopping online, according to Juxt New age Marketing, a market research firm. However, the company's E-commerce market is expected to continue to grow. According to the Boston Consulting group, in 2010, India's online retail sales accounted for about 0.9% of total retail sales, but this ratio is expected to grow to 4.5% by 2016.