A PayPal official announced on Monday that the company's online payment service may soon become a major player in the Chinese market. The forecast is based on the growing need of Chinese businesses and customers for a reliable means of selling and buying goods abroad.

Xinhua reported that the Vice President for PayPal's Asia Pacific region Rohan Madevan said that China's projected growth in online payment transactions is estimated to reach anywhere between 35 to 40 percent.

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Madevan divided the Chinese market into two groups. One sector represents Chinese business who are selling their wares to customers abroad. The second group are local buyers who are purchasing items from abroad, according to Want China Times. Both groups would need access to an online payment service like PayPal for their transactions to push through.

Madevan said that both groups are increasing considerably in China, which means that PayPal can expect many of them to use an online payment service for overseas financial transactions.

Local businesses who will benefit from having access to Paypal's services include exporters with large inventories of items ranging from electronic gadgets to fashion clothes. Many people in China have disposable income that can be used to purchase items from outside the country.

Paypal returned to being a separate company once again. The online payment service was first bought by eBay before a decision was made to divide the two, according to Business Standard. It is now listed as PYPL in the NASDAQ index on Monday.

To symbolize PayPal's confidence of making it big in the Chinese market, the company invited OnePlus co-founder Carl Pei to grace PayPal's return to the American stock exchange as an independently listed entity.

Pei thanked the online payment service for helping his company sell its smartphones to buyers living abroad.

After the separation from its parent company, PayPal has an estimated worth of around $50 billion. It is earning twice as much as eBay based on their 2015 second quarter reports. From April to June, PayPal's income grew by 16 percent in contrast to eBay's seven percent growth, according to BBC. PayPal's share price closed at $40.90.

TagsPayPal, eBay, online payment service, PayPal China, PayPal NASDAQ, PYPL, Chinese online market, China internet payment, Online transactions