PayPal to open 2nd operations hub in KL

ONLINE payment specialist, PayPal, plans to open its second Asian service operations hub in Kuala Lumpur within the next six months.

This is to cater for an increasing demand for e-commerce, particularly in the Asean region.

PayPal Asia Pacific Vice President Farhad Irani said the company is at present scouting for an appropriate location and approval from the relevant authorities.

"We will be able to make a definitive announcement within the next three months. We also hope this hub will be operational by year-end," he added, when asked about the investment by the company for the hub.

Irani said the hube will employ between 250 to 400 people with the ability to speak different languages in serving the various countries in Asean.

"The company has at present, service operations in Shanghai, China, with 450 employees," he highlighted.

He said the opening of the hub in Kuala Lumpur is part of the company's long term plan to strengthen its presence in Malaysia.

Irani had earlier signed a memorandum of understanding (MoU) with the Malaysia External Trade Development Corporation (Matrade) and eBay.

The MoU will see PayPal and eBay organise a series of seminars, workshops and provide consultation support services to Malaysian small and medium enterprises (SMEs).

The Deputy Minister of International Trade and Industry, Datuk Mukhriz Mahathir, witnessed the signing of the MoU.

The implementation of the eBay for Business Programme, will see the SMEs gain knowledge on how to effectively conduct market research, undertake sourcing and marketing of products as well as provide customer service for the merchant sector.

Irani said PayPal and eBay remain very optimistic about the prospects of e-commerce.

"With 15.8 million internet users and e-commerce expected to grow at a compound annual growth rate of over 28 per cent from 2006 to 2010, the potential for Malaysia remains tremendous," he explained.

On eBay, for example, Malaysia is one of the most active markets in cross border trade within Southeast Asia.

"The total value of goods, sold to overseas markets like the United States or Europe by Malaysian eBay sellers alone, grew by 69 per cent year-on-year in January 2010," he said.

It was reported that PayPal processed more than US$6 billion in total payments volume in the Asia Pacific in 2009.

Irani said with the special tie-up with Matrade, its members who sign up for PayPal accounts will benefit from a 25 per cent discount on all transactions fees for the first 100 transactions, made within their first three months of registration.

Besides that, eBay will also be waiving insertion fees for the first 100 listings created by Matrade members.

PayPal, which is an eBay company, manages more than 84 million active accounts in 190 markets and 24 currencies around the world. - Bernama


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PayPal to open 2nd operations hub in KL