PayPal Inks A Deal With China UnionPay (EBAY)
PayPal (NASDAQ: EBAY) has announced its partnership with China UnionPay Co. UnionPay is the largest electronic-payment service provider in China. PayPal (EBAY) also said that it expects to increase its workforce in Asia by the end of the year. The deal will help PayPal in countering the competition from emerging rival Alibaba Group.
A major chunk of PayPal’s business in China comes from transactions made by China-based eBay merchants. This partnership will let PayPal provide services to Chinese consumers shopping from overseas. Scott Thompson, President of PayPal, said, “This partnership removes an important friction point that exists across borders, and we are thrilled to eliminate the payments barrier so merchants can welcome millions of new Chinese customers to their sites."
