PayPal India hits pause on domestic payments business

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PayPal India hits pause on domestic payments business:

It looks like PayPal, the American payments processing giant, is beginning to scale down its domestic business in India, according to multiple partners and recently departed employees. PayPal has told its card network partners that the company is ‘pausing’ its domestic business and that they will stop onboarding new merchants from March 2021. As it is believed to have incurred significant losses from its domestic payments business. The company will continue to offer its cross-border payments service in India.

According to The Morning Context report, third-party staffing agency Adecco, which had several of PayPal’s India employees on its payroll, made an announcement for PayPal’s laid-off employees saying, “PayPal has stopped the project here in India, and they do not want your services anymore. So, we are closing this project with PayPal.”

“PayPal is saying that it will stop onboarding new merchants but will continue to service existing customers. This clearly means if you will not add new ones then slowly the business will shut down,” says an industry executive aware of the development.

“With the UPI space already crowded with companies such as Walmart-owned PhonePe, Alibaba-backed Paytm, Google Pay, Amazon Pay and now WhatsApp Pay, there is hardly any game left for PayPal,”

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PayPal had a good opportunity for growth in our country, and held a reputable brand value.

It did not innovate its payment products to suit the changing demand of digital transactions in India.

Everyone who entered the payments business in India had happily taken a market share of the growing demand for digital transactions, but PayPal was nowhere in this game. If there was any CEO for paypal in India, that person must have been working hard to bring this company down into this current state.

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teriab33 wrote:

PayPal had a good opportunity for growth in our country, and held a reputable brand value.

It did not innovate its payment products to suit the changing demand of digital transactions in India.

Everyone who entered the payments business in India had happily taken a market share of the growing demand for digital transactions, but PayPal was nowhere in this game. If there was any CEO for paypal in India, that person must have been working hard to bring this company down into this current state.

They were so lenient when they entered India.. let users exploit their new user offers way longer than it should’ve been
Then they were busy flagging and blocking accounts

There was super buzz initially and they could’ve made it big with their current business model even w/o any instant innovations if they had paid some attention on how they spent marketing money!

Missing