Is PayPal Available in China & How Does It Work?

PayPal operates as a global online payment platform, with services extending to China. While available in mainland China, its functionality and scope differ significantly from operations in other countries. The primary goal of its presence in China is to facilitate international transactions, rather than serve as a widespread domestic payment solution.

PayPal’s Operational Status in China

PayPal’s presence in China is shaped by its strategic acquisition of a local payment firm. In 2019, PayPal became the first foreign payment platform granted a license to provide online payment services in China, initially acquiring a 70% stake in GoPay (Guofubao Information Technology). By January 2021, PayPal gained full 100% ownership of GoPay, solidifying its position as the first wholly foreign-owned online payment provider in the country. This allows PayPal to operate as a licensed domestic payment platform, though its focus remains predominantly on cross-border payment services.

Despite this licensing, PayPal’s utility for transactions solely within mainland China is restricted. This differs from the comprehensive services offered in regions like the United States. Local payment methods such as Alipay and WeChat Pay dominate the domestic market, holding a substantial majority of the market share. Consequently, while a PayPal account can be accessed from China, its primary purpose is for international financial flows, not everyday internal transactions between two parties located within China.

Sending and Receiving Funds with China

For individuals and businesses outside China, PayPal remains a viable tool for facilitating cross-border payments to recipients in China. You can send money internationally through the PayPal app by selecting “Send & Request” and entering the recipient’s information, such as their name, email address, phone number, or bank account details. The amount and currency, typically Chinese Yuan (CNY), are then specified, and the preferred payment method is selected before confirming the transaction. PayPal’s Xoom service, integrated into the PayPal app, also allows sending money directly to Chinese bank accounts or mobile wallets like Alipay and WeChat.

Various fees apply when conducting these international transfers. PayPal charges a currency conversion fee, typically ranging from 3% to 4% added to their wholesale exchange rate, if currency conversion is necessary. For personal payments funded by a PayPal balance or linked bank account, an international transfer fee of 5% of the send amount is usually applied, with a minimum fee of $0.99 and a maximum of $4.99. If the payment is funded by a credit or debit card, an additional fee of 2.9% plus a fixed fee based on the currency may be charged on top of the 5% international transfer fee.

Domestic Use and Account Linking in China

Using PayPal for purely domestic transactions between two parties within mainland China is generally not a primary function of the platform. Unlike many other countries, PayPal is not widely used for daily retail or supermarket payments in China. Local alternatives like Alipay and WeChat Pay are prevalent and enable payments via QR codes. While it is technically possible to establish a PayPal account in China and link it to a Chinese bank account, the process and utility are often more complex than for cross-border activities.

To link a Chinese bank account, a specific PayPal China account must be set up, which is distinct from PayPal accounts registered in other countries. Challenges can arise during the verification process, as some smaller Chinese banks might not be familiar with PayPal’s procedures. When withdrawing funds from a PayPal China account to a local Chinese bank account, a withdrawal fee of approximately 1.2% may be applied. Certain types of Chinese bank cards, particularly UnionPay cards without a CVV code, might present difficulties in linking to a PayPal account.