PayPal is planning to shut down its domestic business in India from 1 April 2021. According to the US-based digital payments company, its priorities towards India did not elaborate, and therefore it has decided to wind down its domestic business in the country.
PayPal is planning to shut down its domestic business in India from April 1 2021. A spokesperson said that the company wants to focus more on India’s International sales rather than domestic payment services. According to the US-based digital payments company, its priorities towards India did not elaborate, and therefore it has decided to wind down its domestic business in the country.
The tech centres of PayPal in India are located in Bengaluru, Chennai and Hyderabad. PayPal entered the territory of digital payments in India in 2017. After one year, the Indian Government demonetised approximately 85% of the currency that was in circulation. By taking advantage of this opportunity, PayPal started to process domestic payments in India to increase its profit.
Impact on the PayPal employees
Many of the employees have been reassigned new teams and jobs. The company wants to keep the impact of shutting down domestic business as minimum as possible. PayPal also partnered with many Indian companies such as BookMyShow, MakeMyTrip and food delivery start-ups like swiggy.
In recent years, India has come up as one of the largest platforms for digital mobile payments. Firms like Paytm, Google pay, Phonepay, and Amazon are continuously working to increase their share in India. PayPal has been offering various cross border payment services in India for more than ten years.
Net revenues of the company
The company allowed the Indian consumers to pay to their merchants online in their local currency. The net revenues reported by PayPal in the last quarter of 2020 was $6.12 billion. The total net revenues for the year billed to $21.4 for the company.
The company also assured that it would continue to invest its resources in product development in India. Paypal claims to have around 377 million active accounts, and it processed around $277 billion in the payment value in the last quarter of 2020.