PayPal still waiting for approval on domestic payment service license from Chinese central bank

eBay owned PayPal stated Thursday that it is still waiting for a reply from Chinese central bank, People’s Bank of China, on the request filed for online payment services license in the country’s domestic market.

According to the company, the application was filed a year earlier and is still in approval process. They say they are still to hear from the bank on the permission approval or rejection.

PayPal has been working in China as the online payment service for the corporate sector that make their international export transactions through their modules.

Alipay.com, Alibaba Group’s electronic and internet payment service has the largest network among the domestic consumers. Upon approval, PayPal will directly be competing with them. Alibaba.com is China’s largest internet based company.

PalPal, despite the fact that it has one large business segment unattended in China, enjoys a prosperous growth in the region. Its operations profitability grew in double digits in the last one year. It amassed $4.4 Billion in online payments in Mainland China Taiwan in 2010. Alan Tien, PayPal’s general manager for China, said in a statement in China Daily, a state-run newspaper.

The expansion in payment operations in China goes aligned with the company’s corporate strategy of spreading the business in the global market. Last August, the company in association with Discover Financial Services expanded the operations in the US to reach almost 7 Million domestic consumers.

The urgency in getting the operation into work comes also in the light of the increasing trend in electronic payment system, especially in the US. The likes of Google and other are getting the electronic payment system up and running in the US with apps like Google Wallet.

PayPal acquired card.io in the summers this year to further enhance its services. Card.io develops and licenses its technology to app developers.

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Posted by Usman Khalid on Sep 8 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.