PayPal trying to get business license in China

PayPal:对在中国申请支付牌照决心很大 沟通没断过 – The Paper

What happened: US third-party payment giant Paypal has been actively communicating with regulators over the past four years to obtain licenses to operate in China, according to Lu Liuliu, the general manager of Paypal China’s merchant business unit. Securing payment licenses is still a rather complicated process for foreign-funded companies, Lu said, however, “Paypal headquarter and Paypal China is taking this task seriously. We are very determined.”

Why it’s important: Payment services overseas are vying to become the first to obtain payment business license from the central bank. In June, London-based payment service WorldFirst applied for a license to operate in China, which is still on pending status. Unable to serve China’s domestic market, Paypal currently focuses on providing a payment platform for Chinese cross-border e-commerce merchants—which is still significant. Cross-border transactions account for at least 21% of PayPal’s transactions worldwide, and China is its largest market.