PayPal has decided to shut down its domestic payment services in India from April 1, in less than four years after the global digital payment platform began its local operations in the country.
“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,” a company spokesperson was quoted as saying in an IANS report.
“This means we will no longer offer domestic payment services within India from 1 April,” the spokesperson added.
The company did not elaborate on why it was shutting down its India business. However, local reports suggested that company’s priorities have shifted in the Indian market.
Currently, PayPal has three centres in Bengaluru, Chennai and Hyderabad which are touted as the largest outside the US. Other than that, it also has its business development teams in India.
The report further said that PayPal plans to 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”.
The company processed $1.4 billion worth of international sales for over 3,60,000 merchants in India last year.
The company on Thursday reported strong growth in the fourth quarter of 2020 with revenue of $6.12 billion.
It reported total payment volume (TPV) of $277 billion, growing 39 per cent. It added 16 million Net New Active Accounts (NNAs) in the fourth quarter.
Over the years PayPal has collaborated with major firms including BookMySow, MakeMyTrip, Swiggy among others.
According to the company, it can have the greatest positive impact in India’s economic recovery by pivoting its business to support its customers where they need it most.
“PayPal is committed to doing all we can to help Indian businesses during these challenging times. The critical role our global payments platform plays in India has only been magnified by the pandemic,” the company spokesperson said.