Global payments giant PayPal could shut down parts of its Indian business from next year, according to Morning Context reported Monday. The company has hinted to card network companies and the Reserve Bank of India that it will stop onboarding new merchants from March 2021, while the cross-border payment service remains active, according to the report citing sources. anonymous.
The company has nearly 250 merchants, but decided to slow the onset of new customers early in the year, according to the report citing a former employee. It also plans to scale back its operations in India, he said.
However, in an emailed statement to MediaNama, the company denied these developments. “We don’t 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 United States is based in India, and that continues to be a priority market for PayPal, ”a company spokesperson said.
PayPal entered India in 2007 and has become a dominant player in cross-border payments. But as domestic payments firms scaled up their operations and fintechs began to enter the domestic payments market from 2017, as a result of demonetization, its presence in the minds of consumers declined. The company remains an important player in the cross-border payments space, but has little or no presence in the domestic payments market.
In fiscal 2019, the company posted revenue worth 654.7 crore, up from 261 crore the previous year. Its losses rose to 8.13 crore in March 2019, from 2.3 crore the previous year, according to regulatory documents filed with the Foreign Ministry.
In September 2020, PayPal India Managing Director Anupam Pahuja, who had worked for the company since January 2016, became Vice President for India, Southeast Asia, Middle East and Africa for PayPal. On the other hand, Siddhart Dhamija, who was a director at PayPal India and its head of business growth, resigned in June this year, according to his LinkedIn profile.