Feeds

PayPal parts company with major China partner

Payments giant on lookout for fresh blood

Protecting users from Firesheep and other Sidejacking attacks with SSL

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.

®

Website security in corporate America

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.