EBay subsidiary PayPal plans to enter China and India’s online payment markets, expanding its domestic electronics payments presence in Asia. PayPal’s domestic e-payments system is already available in Asia in countries such as Japan and Australia.
Of the two countries, China represents the bigger online market. The country has 193 million e-commerce users, according to the China Internet Network Information Center. In China, e-commerce is expected to surpass 750 billion yuan ($118 billion) this year and it is set to become the world’s largest e-commerce market in 2015, industry figures showed.
In India, the e-commerce market is expected to grow by 47 percent to more than 460 billion rupees ($9.2 billion) this year, according to the industry group Internet and Mobile Association of India.
“Today, PayPal is used mainly for cross-border international payments for both countries,” Rupert Keely, PayPal’s senior vice president for Asia Pacific, told Reuters in reference to China and India.
Keely said PayPal had applied to China’s central bank for a license, while there were similar plans for India in future. The company does not know when it will receive the licenses.
“If PayPal focuses on entering China’s Internet online payment market, the competition will be fierce,” said Zhang Meng, an analyst with Analysys. “The domestic companies have already established themselves.”