PayPal to shut down India’s domestic payments business from April 1
As of April 1, PayPal will wind down its domestic payments business in India, the company said on Friday in a statement. PayPal, based in San Jose, California, will instead concentrate on its cross-border payments business, which means that global customers will still be able to use the service to pay Indian merchants.
The company 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”.
PayPal has been a payment option for many Indian online apps, such as MakeMyTrip travel and ticketing service, BookMyShow online film booking app, and Swiggy food delivery app. PayPal said in October last year that it would allow customers to keep Bitcoin and other virtual coins in their online wallet and shop at the 26 million retailers on their network using cryptocurrencies. The new service makes PayPal one of the largest US companies to provide access to cryptocurrencies for consumers, which could help Bitcoin and rival cryptocurrencies gain wider acceptance as viable methods of payment.
In an interview, President and Chief Executive Dan Schulman said the San Jose, California-based company hopes the service will encourage the global use of virtual coins and prepare its network for new digital currencies that central banks and businesses can develop.
We work with central banks and think about all forms of digital currencies and how they can play a role in PayPal,”We are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role,”
Over the coming weeks, US account holders will be able to buy, sell and keep cryptocurrencies in their PayPal wallets, the company said. In the first half of 2021, PayPal plans to extend the service to its peer-to-peer payment app, Venmo, and some other countries. From early next year, the company said, the ability to make payments with cryptocurrencies will be available. Other mainstream fintech companies, such as Square mobile payment provider and Robinhood Markets stock trading app firm, allow users to buy and sell cryptocurrencies, but given its size, PayPal’s launch is noteworthy.