PayPal Holdings will wind down its domestic payments business in India from April 1, the company said in a statement on Friday. "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," the San Jose, California-based company said. "This means we will no longer offer domestic payment services within India from 1 April," the company added.
PayPal said that it wanted to re-align its resources towards businesses with larger impact. "We intend to focus all our attention on enabling more international e-commerce for Indian businesses. The company said that it will invest in product development (in India) that enables Indian businesses to increase their sales internationally.
As PayPal will focus on its cross-border payments business from April, global customers will be able to pay Indian merchants using the service.
PayPal has been a payments option on online apps in India such as ticketing services viz. MakeMyTrip and BookMyShow, and food delivery platform, Swiggy. PayPal saw a 30 per cent increase in merchants using Paypal to conduct cross-border trade in the second half of 2020.
Among other payment platforms, Paytm, PhonePe, Google, Amazon and Facebook are striving to increase their share in India by offering a range of payment services to individuals and merchants alike.