Introduction
PayPal is an American based company that operates in digital and online payments in almost all countries. It is used mostly by all the countries to avoid paperless transactions. It makes its profit by charging a nominal fee every time you make a transaction. Here at businessbytes, we will give you all information about why Paypal is closing down domestic transactions in India.
Closing of domestic payments through PayPal from April 1.
Here are some of the most speculated reasons as to why Paypal is shutting down its business in India.
- Paypal’s transaction problems with Reserve Bank Of India.
PayPal which has been offering cross digital transactions of money from different borders for over more than 10 years started its services in India in the year 2017. Earlier in the year 2011, there were some troubles with PayPal with the Reserve Bank of India regarding some personal payments.
- Not complying with the Foreign Exchange Management Act, 1999.
At the time when Paypal started its business operation in India, it was not able to comply with Foreign Exchange and Management Act, 1999. This can also be a reason why now it has to bear the consequences.
- Change in company’s priority
When the news was out, some authorities of the company also said that they are changing their priorities as they want to focus more on international sales rather than focusing more on domestic services within India. This will enable the international customers to pay Indian customers easily.
About Paypal’s growth in India
PayPal entered the Indian market just after the Indian government banned the use of 500 and 1000 notes. Demonetisation was the biggest advantage that led PayPal to increase its value in the Indian market. However, with the entry of other rival companies, Paypal could not reach up to its expectation in the Indian market.
Some Major highlights about PayPal
- Paypal over the years had built its trust in the Indian market that it partnered with popular brands like BookMyShow, travel booking app Makemytrip, and food delivery app Swiggy.
- Services of PayPal in foreign countries are still the same and customers there can still use the app for making cross-border transactions.
- PayPal will now put more focus on international service.
- PayPal is ready with its new service where it will allow its customers to keep Bitcoins in their PayPal wallet through which customers and sellers can widely accept virtual coins.
- At present PayPal has three office branches in India which are in Hyderabad, and Bangalore.
Conclusion
To conclude, it can be said that however PayPal was a great digital payment app, but after the entry of other competitors like Billdesk, paytm had to bear some major consequences which severely affected Its market position. However, PayPal is a very well-established company in the US and other foreign countries and is used by the majority of people for making cross-border transactions.
Stay tuned with businessbytes for more such updates about the business world.
