UPDATE: As of April 5, PayPal has canceled this project after North Carolina lawmakers passed a law that restricts protections for lesbian, gay, bisexual and transgender people.
In a company statement, Dan Schulman, President and CEO of PayPal, said: “The new law perpetuates discrimination and it violates the values and principles that are at the core of PayPal’s mission and culture. As a result, PayPal will not move forward with our planned expansion into Charlotte.”
PayPal, Inc. will open a 400-job global operations center in Charlotte, NC. The San Jose, CA-based technology platform and digital payments company will invest over $3.6 million in Mecklenburg County by the end of 2017.
PayPal’s Charlotte operations center will employ a diverse set of workers including customer service, risk operations, engineering and technology and other staff. The center will yield a payroll impact of nearly $20.4 million per year for Mecklenburg and surrounding counties.
“We are excited and eager to join the Charlotte business community,” said John McCabe, Senior Vice President of Global Operations at PayPal. “With its strong ties to the financial community and technology savvy talent pool, Charlotte is an ideal fit for this new operations center. This new site marks an exciting opportunity for PayPal as we continue to serve our customers, both merchants and consumers and support them in using PayPal as a payments platform to shop, sell, send money or even donate to worthy causes.”
The state Economic Investment Committee approved a Job Development Investment Grant (JDIG), encouraging and recognizing PayPal’s arrival in Charlotte. Receipt of the award is based on proof of job creation and other performance requirements. JDIGs are awarded only to new and expanding businesses and industrial projects whose benefits exceed the costs to the state and would not be undertaken in North Carolina without the reimbursement.
Under the terms of the company’s JDIG, PayPal is eligible to receive up to $2,797,500 in total reimbursements over the 12-year life of the award. Receipt of each annual installment is based on state-certified proof that the company has fulfilled incremental job creation requirements.
Approximately $932,000 in additional funds from the company’s JDIG award could be added to the state’s Utility Fund for infrastructure improvements in less populated counties. When a JDIG is awarded to a company whose site is located in the state’s more populated, economically prosperous counties such as Mecklenburg, a percentage of the company’s grant is allocated to the Utility Fund to encourage economic development in Tier 1 and Tier 2 counties.
“North Carolina is the ideal destination for innovation-based, worldwide companies like PayPal,” said Governor Pat McCrory. “[This] announcement means that we can add another prominent name to the state’s growing list of technology businesses with major operations here.”
“North Carolina’s technology-savvy workforce will provide the perfect fuel for PayPal’s continued growth,” said North Carolina Commerce Secretary John E. Skvarla. “This company’s global reputation for innovation and customer service makes it a strong fit for our state’s business-friendly community.”
In addition to North Carolina Commerce, other organization supporting PayPal’s project include the Economic Development Partnership of North Carolina (EDPNC), the North Carolina Community College System, NCWorks, Mecklenburg County, the City of Charlotte, the Greater Charlotte Chamber of Commerce and Mecklenburg County.
Relocating or Expanding Your Business In North Carolina
Considering North Carolina for your company’s relocation or expansion project? Check out Business Facilities’ North Carolina Incentives and Workforce Development Guide.