How PayPal is penetrating India’s vast Fintech market

Founded in 2002 by Elon Musk, Peter Thiel, Ken Howery, Luke Nosek, Yu Pan and Max Levchin, PayPal launched its domestic operations in India in2018 enabling Indian consumers and merchants to enjoy the convinience of a single account for their domestic and cross-border transactions.

Speaking about the fundamental difference between PayPal and other payment players, Navin Mistry, Director of Mid-market, PayPal India, highlighted the propositions of safety and security.

In a two-sided network, which has merchants and consumers, PayPal tracks the volumes and the flow of each transaction, maintaining a detailed history. PayPal’s Buyer and Seller Protection policies covers both merchants and consumers for eligible sales and purchases.

Mistry said, “PayPal’s core value proposition is our ability to manage the risk in digital payments. We do not pass any financial information of the consumer to the merchants which helps consumers make digital ways of transacting a habit. Our focus is to become a part of the everyday lives of the Indian consumer. For merchants we offer a seamless on-boarding process and a host of services like invoicing and sales reports which help him focus on growing his business while we manage his payments.”

Differentiation in India

For PayPal, India is a key growth market. Our focus is to bring all our global experiences and products to India.

We have also set-up three technology centres which are the largest for us outside of the US and houses over 3500 employees.

The latest launch was of the Hyderabad tech centre, following the acquisition of fraud prevention platform Simility in 2018.

The Hyderabad centre would focus on leveraging PayPal's extensive expertise in data science, risk management, and machine learning to empower small and medium-sized businesses to identify and protect themselves from fraud.

He further says that OTPs are only meant to signify authorisation but they do not necessarily guarantee protection or security, whether it is for the product or your money.

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