PayPal to wind down India payment operations this year

PayPal to wind down India payment operations this year

PayPal Inc. will wind down its payment operations in India this year, a spokesperson said on the condition of anonymity. Instead, it will scale up its existing cross-border trade business for small enterprises, to gain a significant share of the country’s rapidly growing export market.

The US-based digital payments player’s domestic operations include its payments gateway and aggregator services for online merchants and brands. The move away is expected to streamline operations in the

country’s highly competitive digital payments market.

The Palo Alto, California-based company will soon initiate a restructuring exercise and, from 6 February, will start notifying Indian merchant partners who avail of its gateway services about plans to terminate contracts by 1 April, the spokesperson told ET. “In the early days of the pandemic when the government’s measures to curb the virus was gaining momentum, we started planning on how we can protect our business and optimise our 

growth here,” the spokesperson said.

“India is a very crucial market for PayPal, and after a thorough analysis, we decided that we are best placed here to focus on enabling cross-border trades and exports for Indian businesses aiming to go global.”

PayPal’s India operations are largely divided into two buckets.

One focused on enabling payments for domestic brands such as Myntra, Swiggy, BookMyShow through the gateway services, and the second unit that focused on cross-border remittance services for exporters and small businesses.

News source : Economic Times

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