Paypal has lined up with Chinese web services company Baidu in a bid to compete in the world's biggest mobile payments market, which is currently dominated by Alibaba's Alipay and Tencent's WeChat Pay.
Announced on Thursday morning, the new partnership will let Baidu's 100 million mobile wallet users make online purchases outside China through the Baidu service. This means foreign merchants who accept Paypal will automatically link to Baidu Wallets as well.
Baidu Wallet is only listed as the 10th-biggest third-party payment platform in China, taking up 0.4% of the the Chinese third-party mobile payments market at the end of 2016, while Alibaba's Ant Financial and Tencent took up 54% and 37% respectively, figures from Analysys said. However, according to Baidu, it still has over 100 million users with activated accounts.
“With Baidu, PayPal will be able to offer millions of international merchants increased access to millions of consumers in China who can search, shop and discover the world through Baidu and Baidu Wallet,” said Dan Schulman, president and chief executive of PayPal.
The announcement comes after Paypal has expanded its integration with Apple and Samsung Pay, as well as formed agreements with Citi and Chase to add instant bank transfers.