According to local media, Tom Eachnet has announced plans to cancel the the use of its PayPal service in China. According to a report by iResearch, Paypal’s share of China’s third party payments market has been reduced to a miserly 1.6%.
Despite offering a free service for local currency payments, there were persistant rumours last year that Chinese regulators would force Paypal to partner with a local company, just as eBay themselves did with the TOM Group.
Meg Whitman said that eBay remained “very committed” to Paypal in China, but with such a tiny market share, she surely must be asking herself if it’s now worth persisting.
