PayPal launches domestic operations in India
Mumbai: Global payments aggregator PayPal Holdings Inc. launched its domestic operations in India on Wednesday. The firm will now offer payment options to both customers and merchants for domestic transactions.
So far, PayPal was offering cross-border payment options to merchants in India. “Both customers and merchants will be able to use the PayPal platform within India. We will also be providing one touch option for making payments through Facebook Messenger,” said Rohan Mahadevan, senior vice-president and chief executive for Asia Pacific.
PayPal is yet to take a call on the launch of its wallet in India. “We are still examining the prepaid instrument guidelines,” said Anupam Pahuja, managing director for PayPal India, adding that the firm will also be looking to offer its other products like working capital to micro, small and medium enterprises (MSMEs), consumer credit, peer-to-peer transactions and remittances among others in future. “MSME will be a key focus sector for us,” said Pahuja, adding that PayPal accounts for nearly a third of the total business to customer export transactions in India.
The firm is not considering giving cashbacks to customers as part of its customer acquisition strategy. “It has been a year since demonetisation drive was announced. While a lot of people have started transacting digitally, it also exposes people to risks like theft and fraud. We will offer them a secure and fast means of transacting,” said Mahadevan. Also, customers will be eligible for free returns and can claim refunds up to six months from the date of purchase.
Pahuja said the firm will be taking risks on behalf of customers and merchants. “About 60% of online buys happen through cash on delivery basis. For a small merchant, cash is crucial. We ensure they get the money as soon as the customer buys online through the PayPal option,”said Mahadevan, adding that the risks are mitigated due to its global experience, large-scale operations and revenue model, which takes into account various risks.