PayPal announced that the domestic payments services in India will be no longer provided from April 1, 2021. Instead, it will focus on cross-border business.
The company statement said –
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.
PayPal cross-border business will facilitate the International payers to pay the Indian merchants. PayPal is a payments platform used by many Indian online merchants like Swiggy, Book My Show and Make My Trip.
In October 2020, PayPal announced some of the new services for its customers. Among the new services, it allowed the customers to hold Bitcoins and other virtual coins in their wallet which can be further used as cryptocurrencies while transacting.
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By introducing this type of service, PayPal has joined among the largest companies in the US which provided the usage of cryptocurrencies for payment types.
President and Chief Executive Dan Schulman of PayPal, California based company has expressed his opinion that the introduction of this service will encourage the virtual currencies in companies development. Also, a wide network can be achieved with this service of new digital currencies usage.
He further said –
We are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role,
PayPal has around 26 million merchants on its network.
It is to be noted that the Indian economy which is on the track of digitalization especially in the payments sector, PayPal’s decision to withdraw from the domestic payments sector is a bit of thinking.
PayPal is a well known digital platform in India where it has gained trust among the Indian public for payments.