Online transaction website and app are the few sectors who have grown even in 2020, one of such digital payment app is PayPal. PayPal is going to put a hold on domestic online transactions from April 1, according to the sources.
“From 1 April 2021, we will focus all our attention on enabling more international sales for Indian businesses, and shift focus away from our domestic products in India,” has said by San Jose-based Company. They also added that they no longer offer domestic transactions within India.
“PayPal Mafia”, if anyone haven’t heard of one, here you go – it is a group of members who have been a founder or owner PayPal in the past. Few of these club members have been a successful businessmen, the owner and CEO is SpaceX and Tesla Company, Elon Musk is a prime example.
Elon was the co-founder of X.com in 1999, it was an online bank. In 2000 X.com merged with a company called Confinity which had PayPal in it. After that Elon shut the X.com and focused more on PayPal because he believed the future going to depend more on digital transaction.
If we continue with history of PayPal, it got sold to eBay for 1.5B USD in stock on which Elon received 165M USD in 2002. It was PayPal got its name as PayPal. PayPal grew a lot in eBay since all its transaction are through PayPal.
PayPal came to India in 2007 and it opened PayPal software developed headquarters in Chennai. In 2010 PayPal stopped all the personal transaction in India that the software just allows business transactions and not transaction between friends and relatives. On those days there was huge commotion among people because the money they send came back to them that is payment-reversal. After that PayPal gave clarification that the amounts have been resent because they won’t be dealing with personal transactions in India anymore.
In 2016, PayPal started it normal transaction in India with the name PayPal payment private limited.
Coming to the block in domestic transaction, PayPal wants to re-align its resources towards businesses with larger impact.
However business transaction from different countries to India and vice versa is still active.
Since online transaction have been growing in pandemic, now they want to focus more on cross broader transaction instead of doing many things at once.
This is such a big deal because PayPal has been a payments option on online apps in India such as ticketing services viz. MakeMyTrip and BookMyShow, and food delivery platform, Swiggy and they would be affected by this change. They have to look for another payment service, if they already have one its will have a less commotion. Job for PayPal is also not so easy, they have stiff competition with companies like Wester Union.