PayPal Finds a Niche in China

May 18, 2010 at 8:19 am PT

EBay’s (EBAY) flagship consumer shopping service has struggled in China, but the company is more successful here than many may think, thanks to its fast-growing online payment business, PayPal.

The company’s legacy in the world’s largest Internet market by number of users has for years been tainted by losing the consumer-to-consumer e-commerce market to Alibaba Group’s retail website Taobao.com. But while Taobao and Alibaba’s payment platform, Alipay, still charge little to no sales commission to merchants–a strategy the Chinese company used to undercut eBay–PayPal’s China General Manager Alan Tien says the company has found a commission-based revenue model that works in China.

Read the rest of this post on the original site

Tagged with: Alan Tien, Alibaba Group, Alipay, China Real Time Report, digital, Digits, eBay, frontpage, Internet, Loretta Chao, PayPal, Taobao.com, The Wall Street Journal

comments so far. Add yours.

Must-Reads from other Web sites

Facebook’s Business Model

Chris Dixon, Co-Founder/CEO, Hunch

Algorithms: The Ever-Growing, All-Knowing Way of the Future

Laura Sydell, Correspondent, NPR

Death in the Time of Facebook

Ryan O’Connell, Writer, Thought Catalog

Understanding the True Reach of Pinterest

Monica Wright, Community Editor, Marketing Land

Sheryl Sandberg: Is She the Real Brains at Facebook?

Geoffrey James, Columnist, Inc.com

Facebook: A Tale of Two Media Models

Michael Wolff, Columnist, The Guardian

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Web Sites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other Web sites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Voices is edited by Beth Callaghan.