One of the world’s largest digital payments company, PayPal has started its domestic payment operations in India. Earlier, the company was offering only cross border payments in the country for close to a decade. Indian consumers can now use PayPal to shop online at some of the most popular businesses and the company will offer Indians a single account for their domestic and cross border transactions. PayPal will also offer protection along with a six month refund window, free return shipping and the famous ‘one touch help’ to all the buyers and sellers in the country. The one touch option skips login and enables a frictionless method of checkout through Facebook Messenger as well.
In a tie-up with around 20 merchants in the country, PayPal has some of the largest businesses like BookMyShow, Yatra and MakeMyTrip as part of the tie-up. The digital payment firm is also looking to offer other products like working capital to micro and SME in the country. India’s journey towards digital payments is on a high growth trajectory and PayPal sees high prospects in the market which is highly inspirational and aspirational.
The move of demonetization and the push towards digital payments by the Government has led PayPal to enter the Indian market. The company has also partnered with government and state-owned banks with a number of initiatives which include digital financial literacy in addition to the e-Tourist visa program. ICICI Bank is the acquiring partner of PayPal in India and Citibank is their nodal partner.
Like other digital payment companies, PayPal could have launched its wallet in India but it is yet to decide on this. The company could launch its other services like peer to peer transactions, consumer credit and remittances among others in the future. The company will take on some established players like Amazon Pay, Paytm and BHIM app in the Indian market. Paytm has recently integrated BHIM UPI in its app to make direct payments from bank accounts and it will be the biggest rival for PayPal. Apart from merchants, how consumers look at PayPal and adapt its services will play a significant role in the growth and expansion of the company. PayPal sees potential in the market and has entered the country at the right time when the consumers and merchants are moving towards digitalization. How it fares, only time will tell.