PayPal all in on cross-border digital services

United States-based online payment company PayPal is doubling down on the cross-border digital payment sector in China, and will bring more advanced global products and services to the Chinese market to help Chinese merchants expand their presence in overseas markets.

"Over the past few years, cross-border e-commerce has experienced rapid growth globally, with consumers' shopping habits quickly shifting toward online purchases, and this shift has created tremendous opportunities for merchants to expand globally," said Hannah Qiu, senior vice-president of PayPal and CEO of PayPal China, in a recent interview with China Daily.

The rapid growth of China's cross-border e-commerce has driven market demand for cross-border payment solutions, Qiu said. PayPal is the first foreign platform to enter China's online third-party payments market and the first foreign payment company with a wholly owned subsidiary in China.

She said that previously, Chinese merchants have had to rely on large platforms overseas to reach potential buyers, but now they are also trying to sell directly to consumers. She added the merchants' capacities in terms of customer acquisition, brand building and compliance operations are also constantly being improved.

"Digitalization plays a constructive role in advancing inclusive financial development. Digital solutions — including payments — enable consumers and merchants of all sizes to participate in and benefit from the global circulation of goods and services, creating shared economic opportunities," Qiu said.

"In the fields of cross-border e-commerce and payments, the application of digital technologies has effectively streamlined trade processes, significantly improved trade efficiency and substantially reduced trade costs."

China's cross-border e-commerce sector has seen robust growth in recent years. The sector's imports and exports reached 2.63 trillion yuan ($362 billion) in 2024, an increase of 10.8 percent year-on-year, said the General Administration of Customs.

Qiu said the cross-border payment sector is undergoing a transformation toward more refined and compliant operations, emphasizing that the company aims to leverage its global expertise in cross-border payments and risk management to help Chinese cross-border merchants better explore new markets.

It has intensified localization efforts by teaming up with Chinese partners to provide customized services, rendering the entire payment process to make it more in line with the habits of Chinese merchants.

Last year, the company launched PayPal Complete Payments in China, integrating a suite of cross-border payment products and solutions tailored for cross-border enterprises. This platform enables Chinese businesses of all sizes to seamlessly handle payments across a variety of cross-border trade scenarios, Qiu said.

Looking forward, PayPal will continue to deepen collaboration with relevant departments and financial institutions to jointly bolster the development of cross-border payments, thus further facilitating the robust growth of cross-border e-commerce and digital trade.

As for the application of fast-developing AI in the online payment sector, Qiu believes artificial intelligence is a transformative technology that the company has been investing in for over a decade.

It has applied AI and machine learning to detect fraud, improve operational efficiencies, provide personalized services and meet regulatory compliance, while placing greater emphasis on empowering small and micro businesses through AI technology, she added.

Qiu said PayPal aims to build an inclusive platform that bridges cutting-edge capabilities with small and micro businesses worldwide, thus enabling them to overcome challenges such as "data scarcity" and "technological bottlenecks" and achieve "data-driven precision operations".

Zhang Jianping, deputy director of the academic committee at the Chinese Academy of International Trade and Economic Cooperation, said the implementation of a new round of opening-up measures — such as the shortened negative list for market entry, the Foreign Investment Law and pilot free trade zones — has created favorable conditions for foreign businesses to invest in China.