news PayPal is shutting down domestic payments business in India

Typical.

Hi, here are two examples as common Financial regulations concerns, that are probable a decision reasons,

Sourav Patel said:

It was allowed as I have tried sending money from one of my Paypal to another and it worked. But you can't send currency in $ USD to another Indian Paypal user. It must be in INR.

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First, sending money to self between accounts at same payment services is different than making instructions within a bank, and e-money policies are mostly forbidding during money laundering Laws.
The other example of limiting transaction of international business to local currency is actually economy protectionism and frankly not widely anticipated as government controlling of money and goods directions, also countering a reached development of the present globally established markets.
Those are possible ideas of the wast problems making a such company shift in the globally 3rd growing economy.
Greetings, regards

Just received an official email from PayPal about the policy update vis-a-vis domestic payments in India. W.e.f. April 1, 2021, INR to INR payments will not be available.

Apparently, it was neither competitive nor remunerative for PayPal. Not many people were using it anyway.

IMO, some PayPal policies would conflict with the financial policies of India, especially those related to seller or buyer protection, withholding of payments, and dispute resolution.

really sad to know that.

topdom said:

Paypal was nice at the beginning but they became an evil company recently. I was wondering how they were making money.. They freeze accounts, and steal money, and prevent withdrawals, and ignore messages or reply with nonsense. Maybe they lost lots of money on financial casino, and being an evil thief was the only solution.

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May be

It seems that India paypal users can accept payments in USD in their account for international transactions,but they could not withdraw it to Indian bank account directly from April 1st onwards..

Rightnow india paypal user can link their bank account and they could not keep money in the wallet as per the Reserve Bank Policy.It should be auto withdrawal to bank account every day..

I think all these facilities will vanish after April 1st and all current India users will be just Paypal International users..

So finally,they are resetting their mode of operations in india with the same operational policies just same as before they started indian operations..

If I am wrong,please correct me also..thanks

clickcents said:

It seems that India paypal users can accept payments in USD in their account for international transactions,but they could not withdraw it to Indian bank account directly from April 1st onwards..

Rightnow india paypal user can link their bank account and they could not keep money in the wallet as per the Reserve Bank Policy.It should be auto withdrawal to bank account every day..

I think all these facilities will vanish after April 1st and all current India users will be just Paypal International users..

So finally,they are resetting their mode of operations in india with the same operational policies just same as before they started indian operations..

If I am wrong,please correct me also..thanks

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I dont think so. Based on the email, its only local INR payments that cant be transferred between accounts. So right now if 2 users are from India they can transfer and receive money from one paypal user to another. Post 1st April thats not possible. You can still receive payments in any currency other than INR in your paypal account and it automatically transfers to your bank as earlier based on exchange rates.

hn said:

I dont think so. Based on the email, its only local INR payments that cant be transferred between accounts. So right now if 2 users are from India they can transfer and receive money from one paypal user to another. Post 1st April thats not possible. You can still receive payments in any currency other than INR in your paypal account and it automatically transfers to your bank as earlier based on exchange rates.

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This is the latest policy change they have posted on 8 Feb 2021 in website

"

• Effective: 1 April 2021 We would like to assure you that you can continue to use PayPal to send and receive international payments. However, effective 1 April 2021, PayPal will no longer offer domestic payment services in India. As a result of this, you will not be able to receive Indian Rupee (INR) payments from other PayPal Payments Private Limited users. As stated above, this has no impact on PayPal’s international services, and you can continue to send and receive international payments in line with our User Agreement."

So as you said,if they continue the auto withdrawal to Indian bank accounts same as earlier after April 1st, it will not affect Indian paypal users much as paypal is not popular india for domestic merchant payments compared to phonepe,google pay and paytm..

clickcents said:

This is the latest policy change they have posted on 8 Feb 2021 in website

"

• Effective: 1 April 2021 We would like to assure you that you can continue to use PayPal to send and receive international payments. However, effective 1 April 2021, PayPal will no longer offer domestic payment services in India. As a result of this, you will not be able to receive Indian Rupee (INR) payments from other PayPal Payments Private Limited users. As stated above, this has no impact on PayPal’s international services, and you can continue to send and receive international payments in line with our User Agreement."

So as you said,if they continue the auto withdrawal to Indian bank accounts same as earlier after April 1st, it will not affect Indian paypal users much as paypal is not popular india for domestic merchant payments compared to phonepe,google pay and paytm..

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Yes...I think there will be no effect on auto withdrawal cause it is mandatory from the govt. Anyways, why would any seller want the local payment via PayPal by paying a fees (India (IN) – Standard Rate 3.00% + 3 INR), if there is UPI services like GPay.

BTW, one thing that UPI does not offer is Buyer Protection. So, if the buyer once sent the money it's gone. So here trust factor plays a major role.

Sourav Patel said:

Yes...I think there will be no effect on auto withdrawal cause it is mandatory from the govt. Anyways, why would any seller want the local payment via PayPal by paying a fees (India (IN) – Standard Rate 3.00% + 3 INR), if there is UPI services like GPay.

BTW, one thing that UPI does not offer is Buyer Protection. So, if the buyer once sent the money it's gone. So here trust factor plays a major role.

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Yes usually i use UPI service only with sellers with good amount of reviews on namepros

clickcents said:

This is the latest policy change they have posted on 8 Feb 2021 in website

"

• Effective: 1 April 2021 We would like to assure you that you can continue to use PayPal to send and receive international payments. However, effective 1 April 2021, PayPal will no longer offer domestic payment services in India. As a result of this, you will not be able to receive Indian Rupee (INR) payments from other PayPal Payments Private Limited users. As stated above, this has no impact on PayPal’s international services, and you can continue to send and receive international payments in line with our User Agreement."

So as you said,if they continue the auto withdrawal to Indian bank accounts same as earlier after April 1st, it will not affect Indian paypal users much as paypal is not popular india for domestic merchant payments compared to phonepe,google pay and paytm..

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Yes thats right. No effect on withdrawal. Only local INR > INR payments are being removed so one person cant send payment to another person in INR which was possible earlier when they allowed.

Isn't it canceled long ago?

Isn't it canceled long ago?

Mytz.com said:

Isn't it canceled long ago?

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No..paypal is still active,but not popular in india for domestic payments..but domestic payments will get affected from 1st April'21 onwards as per their new policy updates.