Paypal – PayPal to shut down domestic payment services in India: What will work?
PayPal will stop domestic payment services within India from April 1, 2021. The US-based payment company announced that they will focus on improving services that offer more International sales for Indian business establishments and individuals. Going forward starting April 1, you will not be able to make use of the PayPal payment gateway to pay for the domestic payment services within India.
The company added that it will continue to invest in product development to enable Indian businesses to reach 350 million PayPal consumers globally. Moreover, the company plans to expand the sales internationally thereby helping Indian economy return back to normalcy after the COVID-19 pandemic. According to company sources, they have processed USD 1.4 billion worth of international sales for over 3.6 lakh merchants in 2020.
With effect from April 1, 2021, PayPal will focus attention on enabling more International sales for Indian businesses. The company will shift focus away from the domestic products in India. PayPal has been struggling to make their payments platform a positive impact among consumers because of the rapid growth of Amazon Pay, PayTM, Bhim UPI, PhonePe, and much more. The company is not comfortable with the UPI platform because its focus is on email-based payment structure.
Even though the move will not largely impact Indian consumers, PayPal was one of the popular payment options on marketplaces like BookMyShow and Swiggy. The reports suggest that RBI has instructed PayPal to abandon their payment gateway because of the absence of the OTP. The Government is keen to pump in more debit and credit cards, which can be used for transactions.
What will work after April 1?
You will continue to receive funds from your International clients for the work you have done. We are not sure as to whether the company will increase the service charges.
What will not work?
You will not be able to pay via the PayPal payment gateway. If you would like to pay, then you have make use of options like debit and credit cards including UPI services if available with the marketplace.
PayPal gained importance among freelancers, bloggers, and YouTubers. The platform provides quick and instant access to payments with the help of an e-mail address. As of this writing, PayPal has stopped manual withdrawals. Hence, you can only use automatic transfers, which will take 24-48 hours from the time of receipt of the funds. We don’t have any information as to when PayPal resumes manual withdrawals to your preferred bank account.