PayPal helps US travelers use mobile payments in China

The news: PayPal will let US users pay at Weixin Pay merchants across China directly through the PayPal app, without a local bank account or Chinese digital wallet, per a press release. 

Users scan or present a QR code at checkout. The feature runs on PayPal World, PayPal's cross-border payment platform, in partnership with Tencent's TenPay Global. 

Zooming out: PayPal World already connects PayPal accounts to Mercado Pago in Argentina and India's Unified Payments Interface, helping PayPal users spend abroad without downloading new apps or exchanging currency. 

The scale of the opportunity with Weixin Pay shows up in travel and cross-border payment data:

Why this matters: PayPal is setting itself up to be a payment app that travelers can use to simplify foreign purchases. Users can rely on PayPal for international acceptance while using their preferred credit or debit card, rather than asking travelers to adopt a new app for each country they visit.

Implications for payment providers: PayPal is positioning itself as the bridge US travelers use to access international markets. 

Competitors face pressure to match this reach. Visa and Mastercard have pursued similar arrangements with Alipay to let travelers link cards directly to their digital wallets, and Citi has partnered with wallet network Dandelion to move money into digital wallets across the Philippines, Indonesia, Bangladesh, and Colombia. As more networks stitch together acceptance deals, the advantage will shift to whichever provider assembles the broadest set of country connections first.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.

You've read 0 of 2 free articles this month.

Get more articles - create your free account today!