PayPal collaborates with wallets in China and India, revolutionizing international remittances for 2 billion people!

Introduction

"The day may come when overseas EC payment screens are no longer intimidating"—on the night of July 22 (U.S. time), TechCrunch reported on the PayPal World initiative, which sent shockwaves through the fintech community. PayPal has partnered with UPI (India), Weixin Pay (China), and Mercado Pago (Latin America) to envision a world where over 2 billion users can make payments and transfers across borders while keeping their "domestic wallets."TechCrunch

The Mechanism and Schedule of PayPal World

• This Fall: PayPal and Venmo to begin interoperability with other wallets

• By 2026: Venmo users will be able to make in-store payments at PayPal merchants worldwidePayPal Newsroom

• Adopting a cloud-native API infrastructure, new wallets can be added in a "plugin" manner

PayPal's spokesperson is enthusiastic about making complex cross-border payments "one-click." Specifically, they envision scenarios where a U.S. user buys coffee by scanning a QR code while traveling in China, or an Indian UPI user shops at a U.S. online store.PayPal Newsroom

Reactions and Sentiments on Social Media

Overall Picture

• Professional Audience → Welcomes it as "innovation"

• General Users → Express concerns about fees and exchange rates but are "willing to try"

• Voices pointing out regulatory and competitive challenges (such as the movements of card networks and rivals like Wise)

Changes in the Competitive Landscape

1. Challenge to Card Networks

   • A structure where the wallet alliance challenges the international network built by Visa/Mastercard

2. Convergence with the Super App Trend

   • In the same context as X (formerly Twitter) partnering with Visa and the rise of Asian players like GrabPay

3. Emerging Markets and Digital Public Goods

   • Could incorporate "national policy payments" like India's UPI international expansion and Brazil's Pix

Challenges and Risks

• Regulatory Compliance: Remittance limits, KYC, and foreign exchange management in each country

• Transparency in Exchange Rates and Fees: Potential dissatisfaction with PayPal's unique exchange spread

• Partner Expansion: Key will be whether they can incorporate Alipay and M-Pesa

Conclusion

PayPal World is a "reboot strategy" aimed at refreshing the image of "PayPal = high cross-border fees." The next 18 months for the wallet alliance will be a litmus test as the company aims for "the payment OS for the AI agent era."