On Friday, the American major digital payment service provider, PayPal Inc. announced that it will soon be winding up its payment services in India and will further shut its service for domestic payment in India from 1st April.
PayPal was offering its payment gateway services to online merchants and Indian brands as well as offering international remittance services for medium and small enterprises encompassing exporters in India.
However, PayPal will now concentrate on streamlining its focus on enabling cross-border payments for medium and small enterprises.
A PayPal spokesperson on 1st April said that PayPal can have a tremendously positive effect on India’s economic recovery by swiveling its business to assist their customers where they want us the most. Therefore, PayPal will now withdraw its attention from domestic products in India and focus all its attention on vacillating more international sales for Indian Business from 1st April. This implies that PayPal will no longer be able to offer its service in domestic payment from 1st April.
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PayPal Planning to Invest in Product Development to accelerate Indian Economy Growth
The company further asserted that it is planning to continue to invest in product development through its services in India as it builds for SME’s selling to worldwide customers.
The spokesperson added that the company will proceed to offer its service in product development that facilitates Indian businesses to attain over 350 million PayPal customers globally, boost worldwide sales and help the Indian economy to grow. In fact, PayPal facilitated international sales worth $1.4 billion for over three lakh sixty thousand merchants in India last year, the PayPal Spokesperson asserted.
The Indian payment gateway services have become competitive over the time with various players including MobiKwik’s Zaapay, PayU, Paytm, and Razorpay payments gateway fighting for the top spot.
As per the latest books of accounts, PayPal Inc. contended to possess close to 377 million active merchants registered with it and facilitated $277 billion in payment value in the recent quarter (Q4) of the year 2020.
The American major digital service provider reported net revenues of over $6.12 billion in the recent quarter of 2020, with cumulative net revenues for the year 2020 standing at $21.4 billion for the company.
How will you be affected?
While the company will no longer offer its services for domestic payment in India from April, the worldwide customers will still be able to disburse Indian merchants via Paypal.
As per the reports, services offered by the company are categorized into two categories. However, export payment services that enable its users to receive payment for the export of any goods or services outside India will remain steady by this decision. However, the second category which comprises Domestic Payment Services by which people can make payments or receive payments for goods and services will no more be available.
PayPal is an application that provides an online payment gateway service to stimulate domestic payment services. As such, people in India we’re enabled to make payments via PayPal application for platforms like Book My Show or Swiggy. However, this service for making domestic transactions will be curtailed soon.
The PayPal company does not facilitate transferring or receiving personal payments in India and this will continue to exist even after April.