EBay's PayPal to stop service on Alibaba site

PayPal will halt its service on AliExpress in August

EBay's PayPal will no longer be a payment option on a site run by Chinese e-commerce giant Alibaba Group, a sign that cooperation between the two companies may be cooling.

PayPal announced on its blog Friday that after August 3, the company will halt its services on AliExpress, a wholesale supplier site that Alibaba launched last year. PayPal did not address the reasons for the move in the blog post, and only said the decision was made after evaluating the company's programs and partnerships to improve its services. PayPal could not be reached for immediate comment.

AliExpress offered PayPal on its site as way to provide more payment options for users. AliExpress works as an English-language site meant for small to medium-size businesses that want to source products from Chinese manufacturers. Many of the site's buyers come from the U.S., U.K., Australia and Brazil, according to AliExpress.

But the partnership between AliExpress and PayPal was also one of the first signs of cooperation between eBay and Alibaba, which have often been seen as rivals. Alibaba has grown to become China's largest e-commerce company, beating out EBay's attempts to grow its presence in the Chinese market.

Last year, relations between the two companies appeared to grow even cozier when the CEOs of both companies spoke at an Alibaba-hosted event and mentioned they would explore partnering. The heads of the two e-commerce giants both said they believed they had an opportunity to help eBay buyers connect with sellers on Alibaba.

In response to PayPal's announcement Friday, Alibaba said in a statement that the company would continue to strive to offer different payment options on its AliExpress site.

Alibaba also has its own online payment service Alipay, which dominates the Chinese market. But the service has been involved in a dispute that has threatened to further damage relations between another U.S. Internet company -- Yahoo.

Yahoo owns a 43 percent stake in Alibaba. But the value of that investment is at risk of being devalued after Alibaba transferred ownership of Alipay to a company under Alibaba CEO Jack Ma.

Yahoo and Alibaba are currently in talks over how compensation will be provided for the loss of the Alipay business.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags internete-commerceebayAlibaba.com

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?