From April 1, American digital payments major, PayPal has decided on Friday to shut down its domestic payments business in India.
In a statement on Friday, the company informed, San Jose said that instead, PayPal will concentrate on its cross-border payments business, ensuring that global clients will still be able to use the app to pay Indian merchants.
“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,” the company said.
The California-based company also stated that “This means we will no longer offer domestic payment services within India from 1 April.”
PayPal has become a payment choice for several Indian web applications, such as MakeMy Trip travel and ticketing service, BookMyShow online film booking app, and Swiggy food delivery app.
The online payments system was providing Indian brands and online merchants its payment gateway.
It was also meting out international remittance services for small and medium enterprises including exporters, in India.
The company, in a written statement, said “We believe PayPal can have the greatest positive impact in India’s economic recovery by pivoting our business to support our customers where they need us most. 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 PayPal spokesperson.
“Its priorities had deviated in India,” the company said in a lengthy response. However, it is not clear why it is winding down the business
Online payments have got a boost since the start of the pandemic as people stuck indoors rely on mobile apps for shopping and paying bills.
After the height of the pandemic, internet purchases have had a boost as people trapped indoors rely on smartphone applications to buy and pay bills.