04 February 2021
PayPal, an American company operating in online payments has officially announced that it is shutting down its domestic business in India. The decision will come into effect from April 1. While making its new commitment official, the company made clear that it will now focus its attention on enabling more international sales for Indian businesses. This means cross-border payments that allow the global businesses to pay Indian merchants using the service will continue to proceed the same way.
Shutting off the domestic payment service within India would mean you will not see PayPal as a payment option on the Indian online apps from April 1, 2021. To recall, Indian online apps like MakeMyTrip, BookMyShow, and Swiggy used to list PayPal as one of the payment options for its customers so that they can pay via PayPal. But this will change from April 1, 2021, and the Indian companies will no longer be able to list PayPal as a payment option.
A report from The Morning Context citing recently departed employees claimed in December last year that PayPal India is looking to permanently shut down its domestic business in India. The report even claimed that PayPal India will stop onboarding new merchants from March 2021. But PayPal refuted this report, stating the company has no such plans down the road.
And, now, almost after two months, the company is disclosing its plans for the country. In a long official statement, PayPal didn’t say why it was winding down its business in India but the previous report had claimed that the company has failed to make inroads in India.
It is unfortunate that the company couldn’t succeed in accomplishing its plans for the country. Last year, PayPal said that it was building a payment service powered by India’s UPI railroad, suggesting the company had some big plans for the country.