In its second-largest acquisition, Amazon buys the company for $970 million.
The effort, with Chinese authorities, involves foreign currency exchange services.
PayPal this week launched an effort with Chinese government officials to boost e-commerce in China and make it easier for the country’s online merchants to sell outside the country. The effort focuses on building what the online payment service, a part of eBay Inc., calls an e-commerce hub in Chongqing, a city of more than 5 million in southwestern China, says Chris Yao, vice president of PayPal Greater China.
The effort, with PayPal calls a partnership with municipal officials in Chongqing, will include building a national telesales center, a merchant training center, a regional business development center, an investment promotion center and a verification center. He gave no details about how the effort will be funded.
Part of the effort involves PayPal and Chinese officials developing a foreign exchange currency service, Yao writes in a blog post. “The hub will help support Chinese merchants to sell their products to buyers all over the world,” Yao writes. “We expect that a faster, simpler foreign exchange conversion process will be a big boost to millions of small businesses and entrepreneurs in China who want to grow by selling their products to the world, but are unsure on how to bring their payments from global buyers back into China in a timely, efficient manner.”
Yao says PayPal plans to test in the first half of 2011 a service that would enable Chinese businesses to accept global currencies and convert their international payments to Chinese yuan for local use.