Ebay's PayPal will stop the service on the Alibaba site

Ebay's PayPal payment will no longer be a payment option on Alibaba's page - China's e-commerce giant. This is a sign that cooperation between the two companies is somewhat cold.

Ebay's PayPal will stop the service on the Alibaba site Picture 1

The announcement on PayPal's blog on Friday said that after August 3, the company will stop its payment services on AliExpress - the site of wholesale suppliers opened by Alibaba. last year. PayPal did not clarify the reason for this on the blog, they just said the decision was made after evaluating the company's programs and partners to upgrade the service. PayPal does not give any further comment.

PayPal is provided on AliExpress's site to increase the choice of payment for users. AliExpress is an English-language website for small and medium businesses looking for products from Chinese manufacturers. According to AliExpress, many buyers on this site come from the US, UK, Austrailia and Brazil.

But the partnership between AliExpress and PayPal is one of the first partnerships between eBay and Alibaba - two companies that are often seen as rivals. Alibaba has grown and become China's largest e-commerce company, defeating eBay's intention to increase its presence in the Chinese market.

In the last year, the relationship between the two companies was somewhat heated when the two sides' leaders spoke at an event for Alibaba presiding that they would seek cooperation. The heads of these two e-commerce giants also said they believed they would have the opportunity to connect eBay buyers to sellers on Alibaba.

About PayPal's announcement on Friday, Alibaba said it will continue to try to provide other payment options on its AliExpress page. Alibaba also has its own online payment service, AliPay - an outstanding service in the Chinese market. However, the service is involved in a controversy that threatens to hurt the relationship with another US Internet company - Yahoo.

Yahoo owns 43% of Alibaba. But the value of this investment is in danger of being underestimated after Alibaba transferred Alipay ownership to a company of Alibaba's executive chairman Jack Ma. Yahoo and Alibaba are currently negotiating on how to compensate for the loss of Alipay business.