Paypal waits for online payment approval in China

PayPal Inc, the online payment arm of online marketplace ebay Inc, still is waiting for a license to conduct online payment services in China, said Alan Tien, PayPal general manager of China.

The company has submitted an application to the People's Bank of China, the central bank, last year, but it's not known whether or when a license will be given.

Once the company obtains the license, it will be in head-to-head competition with Alipay.com Co, China's biggest online payment arm under e-commerce giant Alibaba Group.

Paypal generates the majority of its revenues in China by providing payment services for companies that export to other countries via online websites.

Total payment volume conducted through Paypal in the Chinese mainland, Hong Kong and Taiwan reached $4.4 billion in 2010 on year-on-year double-digit growth, Tien said earlier, expecting such a growth rate to continue in the years to come.

Third-party payment service providers have to gain licenses from the central bank to conduct business. Nearly 200 companies have got licenses of this kind in China.