By
Bhushan Akolkar
April 23rd, 2024
Within the partnership, UnionPay cardholders will be able to add their UnionPay cards to PayPal accounts and use them in countries where PayPal is accepted.
On Wednesday, it got about that American online payments company PayPal had partnered with UnionPay International (UPI), a subsidiary of the Chinese leading payment processor UnionPay. For both companies, the deal is a good way to expand their networks and penetrate into new markets.
Jim Magats, senior vice president of global payments at PayPal, commented:
“At PayPal, we are proud of this landmark agreement with UnionPay International and the global impact that this creates for our joint customers, building on our status as the first foreign payments platform licensed to process online payments in China.”
“The partnership will give UnionPay customers more choice when shopping cross border and has the ability to contribute to the overall growth of China’s e-commerce ecosystem. It will also give PayPal the opportunity to explore the option to expand PayPal’s digital wallet to physical retail locations where UnionPay is accepted in China, or internationally,” added he.
Within the partnership, UnionPay cardholders will be able to add their UnionPay cards to PayPal accounts and use them in countries where PayPal is accepted. They include Australia, the Philippines, Singapore, South Korea, and Thailand. Besides, PayPal and UPI are planning to expand this list in 2020 and add more than 30 markets.
Moreover, UPI promises to ‘explore opportunities to support PayPal’s merchant and consumer ambitions in China.’
Larry Wang, vice president, UnionPay International, stated:
“We are very glad to deepen collaboration with PayPal, the global leader in e-commerce. Both parties will jointly explore and implement the application of new products and new payment modes in the field of cross-border payment, hoping to better serve our cardholders and create greater value for both sides.”
PayPal Impetuously Entering the Chinese Market
The news PayPal partners with UnionPay means that the American giant strictly adheres to its expansion strategy. In particular, the Chinese market is extremely attractive to PayPal. As we reported in October 2019, the company first entered the market by buying a 70% equity state in Chinese GoPay. Notably, Paypal became the first international entity to offer its online payment solutions in China.
The recent partnership agreement with UnionPay is a milestone event for PayPal. UnionPay has 130 million users outside of China. 177 countries and regions accept UnionPay cards, with 58 countries and regions issuing them. Over some time, PayPal will get access to the same client base.
By the way, some experts believe that this year, PayPal will enjoy the rapid growth of its shares. Several factors will foster this growth. Firstly, the company has long-term and productive partnerships. One of them is with the global Latin American e-commerce giant MercadoLibre. Secondly, the company has enough resources to expand by making acquisitions. PayPal has already acquired 20 organizations. The latest company purchased was the Honey Science Corporation. The sum of the deal made up $4 billion.
And of course, we can not mention the products PayPal offers. The company provides a number of services and continuously improves its quality.
Considering all the above mentioned, it’s a safe bet to say that in 2020, PayPal will definitely go great guns.