Feeds

PayPal parts company with major China partner

Payments giant on lookout for fresh blood

Internet Security Threat Report 2014

Global payments behemoth PayPal could be in for a spot of bother in Asia after a much heralded partnership with Chinese e-commerce platform DHGate.com, its biggest in the region, ended this week.

The firm confirmed to The Reg that as of Monday DHGate does not accept PayPal as a payment method, although failed to elaborate on the reasons for the split – DHGate still accepts a wide variety of alternative payment methods including Visa, Mastercard, EPS, bank transfer and Western Union, for example.

A statement from PayPal had the following:

After a thorough annual business review by PayPal, both companies have mutually agreed to part ways due to different approaches to achieve their respective business goals and standards. PayPal and DHgate wish each other the best as both strive to deliver safer, more secure and trusted experiences for their customers.

The dissolution of what was claimed to be PayPal’s biggest partnership in Asia will come as something of a blow to the firm’s expansion plans here, especially if DHGate’s claims that it has attracted over three million buyers are correct, although there are reports that the e-commerce trader had hit something of a rocky patch recently.

PayPal is certainly not bereft of partners in Asia.

It recently teamed up with Japanese mobile operator Softbank to launch the $25m (£15.5m) joint venture PayPal Japan, and has rolled out its PayPal Here mobile payments system for bricks and mortar stores in the land of the rising sun, as well as Hong Kong.

However, it could be struggling for big name partners now in the huge Chinese market, where home-grown rival services like Alibaba’s Alipay, web giant Tencent’s Tenpay and China UnionPay dominate, among others.

That market, by the way, is set to be worth 18 trillion yuan (£1.4tr) by 2015 if the government’s plans to haul the country to the top of the e-commerce charts are realised.

PayPal’s parent company eBay does operate in the People’s Republic, but is dominated by domestic giant Taobao and focuses mainly on cross-border commerce deals.

Sadly, PayPal said it doesn’t comment on any of its merchant’s businesses, so there’s no way of telling exactly how well it's doing in China, but the firm was keen to emphasise it’s definitely still open for business in the region:

We remain committed to connecting Chinese merchants to our global buyer base, be it B2B or B2C cross-border transactions. As we are available in 190 markets and support 25 currencies, many Chinese merchants of all sizes accept PayPal on their web site to grow their overseas business.

®

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.