Executive Summary

• PayPal announced that it has formed a strategic partnership with Baidu, which will allow PayPal’s global merchants to accept payments from Baidu Wallet users.
• The strategic move should help Baidu Wallet better position itself in the overseas payment market. In terms of mobile payment development, Baidu lags behind in the domestic market where Alibaba Group affiliate Ant Financial and Tencent dominate.
• The partnership with Baidu should further increase PayPal’s appeal to global merchants. PayPal already partnered with UnionPay last year to allow global merchants to accept payments from Chinese customers.