Alibaba: Payment methods on AliExpress

Earlier this month PayPal decided they’d cut ties with Alibaba’s AliExpress platform and would cease to process payments to merchants from the 3rd of August this year.

We asked AliExpress their thoughts on PayPal’s decision to part company with them, and whilst they were diplomatic in not slating PayPal (which I have to admit under the circumstances I might not have been so restrained), but they did tell us:

AliExpress is committed to serving our customers with choice in payment options. Currently, AliExpress accepts payments made using Visa and Mastercard credit cards, the Moneybookers online payment system, bank transfers and certain bank debit cards. As always, our primary focus is our customer’s needs, and we will continue to offer multiple, secure payment options on AliExpress for our customers around the world. We are always exploring ways to make payment easier for our customers

It’s worth remembering that AliExpress is a pretty safe platform to purchase on. Not only do you have the standard protection that your payment provide gives, but AliExpress hold all payments in Escrow until the buyer confirms they’ve received the goods and they’re as expected. Until the buyer confirms receipt the seller doesn’t receive the funds.

I still think this is the wrong decision for PayPal. I know that AliExpress, although intended for trade purchases, is used by many consumers. At the end of the day though whether it’s consumer or businesses surely transaction payment volume is what PayPal is all about so why cut off an entire marketplace?