EcommerceBytes-NewsFlash, Number 2867 - August 10, 2012     2 of 6

eBay's Payment Service PayPal Falters in China, Advances in Brazil

Email This Story to a Friend

Last year, Chinese wholesale marketplace DHgate launched a new mobile store powered by PayPal's Mobile Express Checkout, offering over three million products in 4,000 categories from Chinese suppliers. But is reporting that DHgate dropped PayPal from both its mobile site and its main website this week.

PayPal does not have a license to operate domestically in China, but it can enable cross-border online payments. said the development, reported by Chinese media this week, leaves PayPal without any major partnership in mainland China.

DHGate competitor Alibaba does not accept PayPal, and its marketplace AliExpress, geared for U.S. shoppers sourcing products in China, dropped PayPal last year due to a disagreement over fees.

In April of last year, PayPal wrote of its mobile partnership with DHgate, "together, DHgate and PayPal are opening up a new chapter for cross-border mobile commerce from Chinese sellers to the world," and it called DHgate "one of China's leading online marketplaces for wholesale products."

EcommerceBytes is awaiting a response from PayPal about this week's development with DHgate.

In the meantime, PayPal provided an update on Thursday - not about its venture in China - but in Brazil. Two years ago, PayPal had partnered with Brazil's telecommunications firm Vivo to provide a payments solution to their users.

PayPal has now launched a mobile platform for Vivo users in Brazil that it says eliminates the need for an internet connection to complete payments.

"Similar to SMS technology, not only can consumers send and receive mobile payments, but they can now add money to their prepaid mobile service directly, without the need to access the web," PayPal wrote. "In a country where more than 80% percent of cell phone owners use a prepaid service and only 15% have smartphones, this technology demonstrates how innovative technology can change the way that millions of people experience payments."

Update: See new developments in this story.

About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to

You may quote up to 50 words of any article on the condition that you attribute the article to and either link to the original article or to
All other use is prohibited.