Global payments giant PayPal may be shutting parts of its Indian business from next year onward, the Morning Context reported on Monday. The company has intimated card network companies and the Reserve Bank of India that it will stop on-boarding new merchants from March 2021 onward, while the cross-border payments service will remain active, the report said citing unnamed sources.
The company has nearly 250 merchants but had decided to slow down on on-boarding new clients from earlier this year itself, the report said quoting a former employee. It also plans to downsize its India operations, it said.
However, in an emailed statement to MediaNama the company denied these developments.“We do not comment on rumors or speculation. We are focused on strengthening India’s digital economy with PayPal’s global payment platform. Our largest workforce outside of the US is based in India, and it continues to be a priority market for PayPal,” a spokesperson for the company said.
PayPal entered India in 2007 and grew to become a dominant player in cross-border payments. But as domestic payments firms scaled their operations and fintechs began to enter the domestic payments market from 2017 onwards, in the wake of demonetisation, its presence in the minds of consumers has diminished. The company remains a significant player in the cross-border payments space, but has a little to no presence in the domestic payments market.
In FY2019, the company posted revenues worth ₹654.7 crore compared to ₹261 crore in the previous year. Its losses grew to ₹8.13 crore as of March 2019 from ₹2.3 crore in the previous year, according to regulatory filings with the Ministry of Corporate Affairs.
In September 2020, PayPal India’s managing director Anupam Pahuja, who was with the firm since January 2016, became Vice President for India, South East Asia, Middle East & Africa for PayPal. On the other hand, Siddhart Dhamija, who was a director at PayPal India and its head of growth for the enterprise business, quit in June this year, according to his LinkedIn profile.
- Parliamentary Committee on personal data summons iSPIRT, PayPal, Visa, Mastercard, Cyble
- PayPal experiences ‘strongest’ quarter, but outlook for Q4 falls short
- PayPal will start supporting bitcoin and other cryptocurrencies on its platform
- PayPal to rollout UPI payments service in India: Report