Yesterday, PayPal announced that it will shut down payment services in India this fiscal year, and related merchant contracts will be terminated on April 1.
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A PayPal spokesperson said that when the epidemic broke out in India, it had already begun to plan how to optimize its business. Finally, they decided to focus on helping Indian merchants who wish to conduct cross-border trade and export to conduct cross-border remittance business. By the way, PayPal has 3 technology centers in India. It is also its largest technology center outside the US market. Indian operations include PayPal’s payments gateway and aggregator services for online merchants and brands.
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“In the early days of the pandemic, when the government’s measures to curb the virus were gaining momentum, we started planning how we can protect our business and optimize our growth here,” the spokesperson told ET. “India is a very crucial market for PayPal, and after a thorough analysis, we decided that we are best placed here to focus on enabling cross-border trades and exports for Indian businesses aiming to go global.”
PayPal Began Business Adjustments Long Ago
In fact, starting in August last year, PayPal began business adjustments. Previously, dozens of sales positions were abolished internally. PayPal stated that this was because of business streamlining rather than being affected by the epidemic. A PayPal spokesperson said that during the epidemic, PayPal did not lay off employees. And now the company has to constantly evaluate the structure, process and resource application. Of course, it will make some changes for new needs and development.
“It made sense to us to do one thing right. This is our cross-border trade business, rather than to focus on multiple businesses … we can’t do everything here,” the source told ET. “From 1 April, we won’t be offering Payment Gateway and Aggregator services here. We are ensuring that this process is smooth for our customers and employees here.”
As for the company’s overall performance, its fourth-quarter results showed payments volume of $277 billion across 4.4 billion transactions. Year on year, dollar volume grew 39% and the transaction count went up by 27%.