EBay Inc.â€™s PayPal business will set up an international e-commerce hub in Chongqing, China, as the company aims to boost exports from the nation by helping merchants conduct faster cross-border trade.
PayPal agreed with Chongqingâ€™s municipal government to set up the center to offer foreign exchange settlement, telesales, training, verification and other services, Dickson Seow, a Singapore-based spokesman, said in an e-mail today. He didnâ€™t disclose financial terms.
Helping local companies connect with global customers will boost EBayâ€™s transaction volume from China more than 80 percent to $4 billion this year, Chief Executive Officer John Donahoe said in September. EBay is counting on PayPal and local partnerships to expand revenue from China after failing to gain a foothold to compete against Alibaba Group.
â€œThis is the first time in the world for PayPal where we are doing such a wide-ranging, comprehensive partnership with a government,â€ Seow wrote in the e-mail. â€œIn this case, we are looking to develop the local e-commerce industry in inland China to help Chinese merchants build up their capabilities to conduct cross-border trade.â€
San Jose, California-based EBay first entered China in 2002. Competition from Alibabaâ€™s auction business Taobao.com cut its market share by half, prompting it to shut down its China site in 2006.