One of the largest online payment processors in the world, US-based PayPal is all set to halt its domestic payment services in India from April 1.
The service will now focus on international transactions for Indian organizations while shifting its focus away from domestic payment solutions it earlier offered to its users in India.
The move has come as a surprise to many who have seen the payments enabler make considerable long-term investments in the second-largest internet market in the world. PayPal operates from its three centers in Bengaluru, Chennai and Hyderabad along with business development teams spread across the country.
Even though there has not been any information from the firm towards why the decision was made, there have been reports that the service was not making significant inroads into the Indian market which is seeing an explosion of fintech solutions.
In its statement, Paypal reiterated that it will 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 payments enabler supported more than 360,000 merchants in India to process as much as $1.4 billion worth of international sales last year. PayPal also registered strong growth in its business in the fourth quarter of 2020 with revenue of $6.12 billion.
The firm reported a 39 percent growth in its total payment volume (TPV), touching $277 billion while adding 16 million Net New Active Accounts (NNAs) in the fourth quarter of 2020.
“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 shared in its brief.