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August 3, 2010updated 04 Apr 2017 4:16pm

PayPal starts standalone unit in Japan

Online payment provider PayPal is to launch independently in Japan, the first time it has entered a market without the presence of parent company eBay, the auction website. eBay has largely been absent in the Japanese market since 2002, conceding to the leading auction market Yahoo Japan It means PayPal will need to sign up merchants and consumers rather than rely on transactions through transactions made on the eBay website, a departure from its usual strategy

By Louise Naughton

Online payment provider PayPal is to launch independently in Japan, the first time it has entered a market without the presence of parent company eBay, the auction website.

eBay has largely been absent in the Japanese market since 2002, conceding to the leading auction market Yahoo Japan. It means PayPal will need to sign up merchants and consumers rather than rely on transactions through transactions made on the eBay website, a departure from its usual strategy.

At a press conference in Tokyo, Andrew Pipolo, who heads up PayPal’s operations in Japan, said it made sense to roll out the service in Japan, the world’s second-largest economy. Transactions in the country totalled 6.7 trillion yen ($76 billion) last year, which is predicted to almost double to 12.2 trillion yen ($139 billion) by 2014. PayPal has set up a new office in Tokyo employing 20 people and will have 2,000 staff in Asia by the end of the year.

“We’re very, very new, we have a very small share of the market, so we still see great opportunities for Japan,” said Pipolo.

With over 87 million accounts worldwide and the ability to deal in 24 currencies, PayPal will market itself to Japanese retailers as the easy way to handle sales abroad.

Following the announcement of eBay’s results for the April-June quarter, John Donahue, CEO of eBay said he believes PayPal will grow to be larger than its online e-commerce sites in the next few years.

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