PayPal Holdings Lays the Groundwork for China Growth

PayPal Holdings (NASDAQ: PYPL) stock is up 89% over the last year as the mobile payment leader continues to post consistent high growth in revenue and total payment volume as more consumers shift to e-commerce. The Amazon.coms of the world have been driving consumers to the convenience of online shopping for a while now, but e-commerce still hasn't quite reached 10% of U.S. retail sales, so there is plenty of room for growth.

In addition to the opportunity PayPal still has in the U.S., it is just getting started in the world's largest mobile payment market -- China. PayPal's recent partnership agreement with Baidu (NASDAQ: BIDU) will allow the internet search giant's 700 million users to choose PayPal as a payment option in Baidu's digital wallet.

Although Baidu's digital wallet service trails its competitors in market share, this is a big deal as China's cross-border e-commerce market is booming thanks to growing demand from Chinese consumers looking for better deals from U.S. merchants. This agreement with Baidu could significantly boost demand across PayPal's payments network over the long term.

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Source: Fool.com