Paypal pulling out of China?

by Sue Bailey

This post was written in June 2007; specific information contained within it may be out of date.

According to local media, Tom Eachnet has announced plans to cancel the the use of its PayPal service in China. According to a report by iResearch, Paypal’s share of China’s third party payments market has been reduced to a miserly 1.6%.

Despite offering a free service for local currency payments, there were persistant rumours last year that Chinese regulators would force Paypal to partner with a local company, just as eBay themselves did with the TOM Group.

Meg Whitman said that eBay remained “very committed” to Paypal in China, but with such a tiny market share, she surely must be asking herself if it’s now worth persisting.

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Author: Sue Bailey
Posted at: Friday, June 1st, 2007 at 11:46 pm
Filed Under Uncategorized
 

Comments

2 Responses to “Paypal pulling out of China?”

  1. eBay going back to China : TameBay on June 22nd, 2007 8:53 am

    [...] In order to strengthen buyer confidence, all transactions will use an escrow service, a third party which holds the buyer’s payment until the seller has delivered satisfactory goods. This is presumably the source of the story about Paypal pulling out of China: there are not yet any details of who the escrow provider would be, but a local company would seem the best bet. In addition, sellers will be more carefully vetted, and restrictions on the sale of luxury goods will be in place. “Whatever we do elsewhere to assure trust and safety, in China we have to do more,” said Whitman. [...]

  2. RIP eBay.com.cn : TameBay on August 31st, 2007 10:08 am

    [...] China has been a failed territory for eBay from day one, and PayPal hasn’t fared any better. The new Eachnet site is a joint venture between eBay and the Tom Group, a local online media company. [...]

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