Online money transfer PayPal is an American company promoting an online payment system in the majority of countries. The company ranked 204th on the 2019 Fortune 500 of the largest United States corporations by revenue. In November 2017PayPal only entered India’s domestic digital payments market. In 2018, the Indian Government demonetized nearly 85% of the currency. It’s the opportunity for PayPal and, PayPal began processing domestic payments in the country. The company operates as a payment processor for online vendors, auction sites, and many other commercial users. It requires a fee in exchange for goods such as one-click transactions and password memory.
PayPal was a payments options on many Indian online apps like Travelling, Movie, and food delivery apps.
PayPal announced the big news on Friday that it will stop its domestic operations in India from April 1. The American company will preferably concentrate on allowing more international sales for Indian businesses and turn focus apart from the domestic products in India to help the Indian economy return to growth.
“We will continue to invest in product development that enables Indian businesses to reach nearly 350 million PayPal consumers worldwide, increase their sales internationally, and help the Indian economy return to growth, attention on enabling more international sales for Indian businesses, and shift focus away from our domestic products in India,” a PayPal spokesperson said.
“The critical role our global payments platform plays in India has only been magnified by the pandemic. In fact, PayPal processed $1.4 billion worth of international sales for over 360,000 merchants in India last year,” he further added. The announcement came hours after PayPal announced its fourth-quarter earnings recording a total payment volume (TPV) of $277 billion, growing 39 percent. Paypal reported 36 percent on an FX-neutral basis (FXN) with revenue of $6.12 billion, growing at 23 percent. The company also owned that it has added 16 million net active accounts during the period. In the financial year, 2020 PayPal declared the strongest performance in its history.