PayPal To Stop Domestic Payment Services

The American Digital payment solutions provider PayPal announced that it will stop offering the domestic payment services within India beginning from April 1, 2021.


  • The PayPal has further said that it will now focus on enabling more international sales for the Indian businesses.
  • It highlighted that; it had processed USD 1.4 billion international sales in the year 2020 for over 3.6 lakh Indian merchants.
  • Thus, the company has decided to shift the focus away from the domestic products in India.

Implications of the decision

With this decision, the PayPal will not be able to offer the domestic payment services within India. But the company will now invest in the product development in order to enable the Indian businesses to reach 350 million PayPal consumers across the world and increase their sales internationally. This decision, in turn, will help the Indian economy return to growth.

HC’s stand on the issue

  • Delhi High Court has asked for the response of the Financial Intelligence Unit (FIU) India on American online payment gateway PayPal’s plea.
  • In its plea, the PayPal had challenged Rs 96 lakh penalty imposed on for the violation of money laundering law.
  • Justice Prathiba M Singh thus issued notice to FIU and has asked for its stand on PayPal”s plea by February 26.
  • The court also stayed the FIU order subject to PayPal. The order asks to maintain the records of all its transactions and deposits within two weeks in the High Court.
  • Reserve Bank of India (RBI) has also been made a party in the matter.
  • Court has directed RBI and the Ministry of Finance to form a committee to take a policy decision on whether entity like PayPal can be considered as a reporting agency.
  • Court also asked whether they be governed by the Prevention of Money Laundering Act (PMLA).

About PayPal

It is an American company that operates an online payments system. It also serves as an electronic alternative to checks and money orders to do the transactions.


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