Paypal to shut domestic payment services in India from April 1
Digital payment solutions provider Paypal on Friday said it will stop offering domestic payment services within India from April 1.
The US-based company will instead focus on enabling more international sales for Indian businesses.
"We will continue to invest in product development that enables Indian businesses to reach nearly 350 million PayPal consumers worldwide, increase their sales internationally, and help the Indian economy return to growth," a PayPal spokesperson said.
The company noted that it had processed $ 1.4 billion worth of international sales for over 3.6 lakh merchants in India last year.
PayPal can have the greatest positive impact in India's economic recovery by pivoting its business to support customers where they need the company most, the spokesperson said.
"From April 1, 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," the spokesperson stated.
The spokesperson explained that this would mean PayPal will no longer offer domestic payment services within India from the said date.
Paypal was one of the payment options on platforms like ticketing services BookMyShow, MakeMyTrip, and food delivery platform Swiggy.
In a statement, PayPal said its priorities had shifted in India, but did not elaborate why it was winding down the business. A report recently said the company, which has amassed over 360,000 merchants in the country, was struggling to make inroads in India.
Earlier in December 2020, Financial solutions provider Razorpay had partnered with global digital payments platform PayPal to facilitate international payments for small businesses and freelancers.
The company's partner businesses can now integrate with PayPal and accept payments from international customers from across 200 markets in a convenient, fast and secure manner, Razorpay said in a release.
(Disclaimer: Additional background information has been added to this PTI copy for context)