PayPal is shutting down its domestic business in India, less than four years after the American giant kickstarted local operations in the world’s second largest internet market.
“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. This means we will no longer offer domestic payment services within India from 1 April,” said a company spokesperson.
In a long statement, PayPal did not say why it was winding down its India business, but a report recently said the company, which has amassed over 360,000 merchants in the country, had failed to make inroads in India. .
Indian news outlet The Morning Context reported in December that PayPal was abandoning its local payments business in India, a claim the company had refuted at the time.
Nonetheless, the move comes as a surprise. The company said last year that it was building a payments service powered by India’s UPI railroad, suggesting the level of investments it was making in the country.
PayPal had also partnered with a range of popular Indian businesses such as ticketing services BookMyShow and MakeMyTrip and food delivery platform Swiggy to offer a faster check out experience. At the time of writing, PayPal website in India appears to have removed all such references.
The company, which says it processed $1.4 billion worth of international sales for merchants in India last year, added 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.”
This is a developing story. More to follow…
