PayPal has announced that the company will be shutting down its domestic payment service in India on April 1, and that it will now be focusing on cross-border payments in the country.
A recent report revealed that PayPal is being used by over 360,000 merchants in India. This includes BookMyShow, a popular event booking service, MakeMyTrip and the food delivery app, Swiggy. In a statement to TechCrunch, the company said that:
From 1 April 2021, we will focus all our attention on enabling more international sales for Indian businesses, and shift focus away from our domestic products in India. This means we will no longer offer domestic payment services within India from 1 April.
A spokesperson stated that PayPal has shifted priorities, and the workforce is growing in India. While Indians can no longer pay to domestic businesses in their local currency, PayPal will continue to offer cross-border payments in India.
With the shift in priorities, some PayPal employees have been reassigned to new teams. Our focus is to always minimize the impact on our people whenever possible. Overall, our workforce is growing in India, not reducing. We are currently recruiting across our sites in India in large numbers.
PayPal says it has processed $1.4 billion worth of sales for merchants in India last year alone. The company has also enabled businesses to reach over 350 million PayPal consumers worldwide.
While this move comes as a surprise, it is also important to note that Indians rely more on Unified Payments Interface (UPI) for local payments. Last month alone, UPI recorded over 2.3 billion transactions worth ₹4.2 trillion (~$57.6 Billion).
Source: TechCrunch
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