PayPal is terminating its domestic business in India, solely four years after the American giant kickstarted native operations within the global second largest internet market.
“From 1 April 2021, we’ll focus all our attention on permitting more international sales for Indian businesses, and shift focus faraway from our domestic products in India. This suggests we’ll not offer domestic payment services within India from 1 April,” as per an official announcement.
In the statement, PayPal added that its priorities had shifted in India, but didn’t elaborate why it had been winding down the business. A report recently said the corporate, which has amassed over 360,000 merchants within the country, was struggling to form inroads in India.
In line with the native reporting outlet, The Morning Context reported in December that PayPal was abandoning its local payments business in India, a claim the firm had refused at the time.
“With the shift in priorities, some PayPal employees are 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 presently recruiting across our sites in India in large numbers”.
Nonetheless, the move comes as a surprise. The firm explained that last year that it had been building a payments service powered by India’s UPI railroad, suggesting a rise within the level of investments it had been making within the country.
Over the past few years, PayPal in collaboration with a variety of popular Indian businesses like ticketing services BookMyShow and MakeMyTrip and food delivery platform Swiggy to offers a faster inspect experience. At the reporting time, the PayPal website in India appears to have already removed all such references.
India has emerged together of the world’s leading battlegrounds for mobile payments firms in recent years. Many heavily-backed firms along with Paytm, PhonePe, Google, Amazon, and Facebook are competing among each other to extend their share in India, where the market is estimated to be worth $1 Trillion by 2023. Several of those firms also offer a variety of payment services for merchants too.
The firm, which says it processed $1.4 Bln worth of global sales for merchants in India last year, added that it’ll still invest in “product development that permits Indian businesses to succeed in nearly 350 Mln PayPal userbase globally, increase their sales internationally, and help the Indian economy return to growth.”
PayPal has been offering cross-border payments support in India for over a decade now. After entering the country, it permitted its users in India to pay at online merchants with the native currency.