Global payments company PayPal is to start its payment services in India from next week, according to The Economic Times report. MediaNama has reached out to PayPal for the confirmation and more details, and we will update as soon as we hear back.
According to the ET report, PayPal has tied up with some merchants to kick off its operations in India, and users will see PayPal as one the payment options during check out from these merchants.
According to the publication, PayPal has not sought a prepaid payments instrument (PPI) licence from Reserve Bank of India to operate a digital wallet but could use the UPI infrastructure through banks to facilitate domestic payments.
In May, it was reported looking to get a wallet licence from the RBI, and there were several reports of PayPal trying to get a license through the acquisition of FreeCharge. The global payment company was also reportedly in talks to invest in Flipkart-owned PhonePe.
PayPal in India
Currently, PayPal is operational in India only for cross-border payments for businesses selling goods and services abroad. The company right now has a product PayPal.me, a digital peer-to-peer payment service aimed at freelancers and small businesses selling products and services across borders. Merchants can set their own profiles and get a personalized URL for their business with their existing PayPal accounts. This URL will help merchants to call for a payment without giving out their bank account details and IFSC or SWIFT code.
Also, PayPal has been ramping up its team in India. Last year in June, PayPal appointed Anupam Pahuja as managing director and country manager for India. Before that, in February last year, it appointed Guru Bhat as the General Manager of the Chennai Technology Center in India. As reported by ET, PayPal also appointed Gunjan Shukla as its CFO for India. As per Shukla’s LinkedIn profile, he joined the company in July this year. And in September, PayPal appointed Siddharth Dhamija, as its head of growth and large merchant acquisition in India, as pointed out by ET in its report.
Payment Segment India
Upon starting its payments in India, PayPal will be battling against likes of Paytm, Google’s Tez, Phonepe, Amazon Pay and others.
Phonepe: Last month, Flipkart committed $500 million for its payments arm PhonePe. The company added that this was an addition to $75 million funds infusion Flipkart had made in PhonePe since acquiring it in 2015.
Amazon Pay: Last month, Amazon’s digital wallet service Amazon Pay also increased its share capital from Rs 400 crore to Rs 2000 crore. Amazon had already infused funds into Amazon Pay twice this year: Rs 130 crore ($20.17 million) in July, and Rs 67 crore ($10.46 million) in May. Also, Whatsapp is also getting closer to enabling payments over the UPI as the feature was spotted on a beta version of the app, in August this year.
Google Tez: A mobile payment service, which was launched by Google in India in September this year, has already garnered 7.5 million users and 30 million transactions in five weeks.
Paytm: As of March 31, 2017, Paytm claims to have over 218 million wallet users, however, it didn’t disclose how many of these are active.