Global digital payment platform PayPal is set to wind up its domestic services in India, which will come into effect from April 1, the company said in a statement.
This comes less than four years after the American giant started the operations in the world’s second largest internet market. The decision was taken in a bid to focus more on catering to the international customers.
It will also focus on enabling increased international sales for Indian businesses, drifting away from the domestic products in India.
“This means we will no longer offer domestic payment services within India from April 1,” a company spokesperson has confirmed.
“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 spokesperson added.
Outside the US, PayPal has three centers in Bengaluru, Chennai and Hyderabad, touted to be largest. The company also has payment options on many Indian online apps like MakeMyTrip, BookMyShow and Swiggy.
However, the company has added that it will continue to invest in product development that will “enable Indian businesses to reach nearly 350 million PayPal consumers worldwide, increase their sales internationally, and help the Indian economy return to growth.”
The California-based – San Jose – company hopes the service will encourage global use of virtual coins and prepare its network for new digital currencies that central banks and companies may develop, president and chief executive Dan Schulman said in an interview.
The company processed $1.4 billion worth of international sales in India last year. It also reported strong growth in the fourth quarter in 2020 with revenue of $6.12 billion.
Without any clarification, the company officials said the move will have greatest positive impact in India’s economic recovery by pivoting its business to support its customers where they need it most.