(Yicai Global) June 7 -- PayPal Holdings Inc. [NASDAQ:PYPL], the global online payment system operator, would be prepared to renew cooperation with AliExpress, an online marketplace owned by Alibaba Group Holding Ltd. [NYSE:BABA], to help it expand in China amid intense competition from online payment providers.
"If there is a win-win opportunity, the possibility of re-establishing a cooperative relationship with AliExpress would not be ruled out," Mr. Hu Baidi, vice president and general manager of PayPal's north Asia business, told Yicai Global.
The two companies collaborated between 2010, when AliExpress was launched, and 2011. The relationship ended because the services provided by AliExpress, an e-commerce marketplace of mainly small Chinese businesses that offer products to international buyers, competed with those of eBay Inc. [NASDAQ:EBAY], the parent company of California-based PayPal. Since PayPal has been independent from eBay since 2014, Mr. Hu believes PayPal has a great opportunity to cooperate with different platforms.
PayPal is focusing on its cross-border payment businesses in China and has formed alliances with the nation's most-popular cross-border e-commerce platforms such as Little Red Book and Ymatou. China's online payment market is cutthroat, with Alibaba's Alipay and Tencent Holdings Ltd.'s [HKG:0700] WeChat Wallet leading the pack. Apart from traditional credit cards Visa and MasterCard, MoneyGram and CashPay, there are also at least 20 cross-border payment instruments in the country.
PayPal's recent upgrade plan for business-to-business services includes a number of goals: simplifying the foreign exchange process to improve vendors' capital turnover; expanding the dollar and yuan cash withdrawal service to include more currencies such as the euro, pound sterling and Australian dollar; and developing teams of offline vendors in cross-border pilot cities like Hangzhou.
In the business-to-consumer domain, PayPal is making every effort to attract more cross-border online shoppers among so-called 'millennials' in China.