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Introduction
Did you wake up to a message saying PayPal is ending domestic payments in India? Don’t worry, you’re not alone.
This news is likely causing you more questions than answers.
Let’s dig into it and see what it means.
Here’s what we know
- As of April 1, 2021, PayPal will no longer process INR transactions within India.
- In other words, you can no longer send or receive money from other Indian PayPal users.
- As far as international payments are concerned, everything is fine.
Why PayPal is Exiting India?
- PayPal just couldn’t compete with UPI (Unified Payments Interface), because it’s free, easy to use, and everyone has it.
- It was never going to be easy to break into a market dominated by players like PayTM and Google Pay.
- There are rumors that PayPal faced regulatory hurdles from the RBI. Regardless, PayPal clearly decided against fighting.
How Does This Affect You?
- The good news is that UPI is way more cost-effective than PayPal, if you mainly do business with Indian customers.
- Another payment gateway like Razorpay will be able to take advantage of this by spreading their wings and snatching up a bigger share of the market.
- If you’re dealing with international clients, you’re in good shape with PayPal’s international payments.
How Do You Proceed From Here?
- When you’re dealing with Indian customers, UPI is a no-brainer. It’s free, instant, and almost everyone has it.
- A popular e-wallet with UPI integration, PayTM is an e-wallet that offers a variety of payment options.
- Another favorite e-wallet, Google Pay integrates UPI as well as offers additional features such as bill payments.
- An online and offline payment gateway, Razorpay boasts a wide range of payment solutions.
- Stripe is an international company that provides comprehensive solutions to international businesses.
Conclusion
As a sign of the times, PayPal is leaving the Indian domestic payments market.
The Indian market has spoken, and UPI is clear leader.
Do not worry! There are plenty of other options available, each with its own strengths and weaknesses.
So, take your pick, and keep your business booming!
