PayPal's new platform lets you use UPI for cross-border payments
What's the story
PayPal is launching a new platform, PayPal World, to enable seamless cross-border transactions. The move is part of the company's strategy to expand its global footprint. The platform will allow users with domestic digital wallets to transact with businesses around the world. It aims to create "interoperability" between local digital wallets and PayPal's global network.
Partnership details
UPI, Tenpay Global among initial partners
The first partners on the PayPal World platform include MercadoLibre's Mercado Pago, National Payments Corporation of India's UPI, and Tencent Holdings's Tenpay Global. This means customers with these wallets can send money internationally or shop overseas by simply clicking on the PayPal button. The platform will go live later this year, with plans to add more partner wallets in the future.
Market impact
Merchants using PayPal can accept payments from different wallets
PayPal CEO Alex Chriss emphasized the uniqueness of this platform, saying "There has never been an interoperable global network that connects wallets together until now." He added that even small wallets in less populated geographies can now integrate with PayPal World. This will also allow merchants using PayPal to accept payments from these wallets without investing in new technology for integration.
User convenience
Simplifying cross-border transactions for consumers, businesses
The PayPal World platform is designed to simplify cross-border transactions for nearly two billion consumers and businesses. For instance, an Indian consumer wanting to buy sneakers from a US-based online store can simply click on the PayPal button and connect with their existing UPI account. This way, they won't have to create a new PayPal account just for this transaction.