PayPal India Pay Launching This Week – Can It Stand Out?
The cashless digital payments market in India is currently red-hot, with prominent global players making an entry in this space.
It seems like the digital payments space in the country is getting a new entrant almost every other day, making it even more challenging. With the recent growth in cashless payments, India has become sort of a convention center for digital payments services.
The latest one is the global digital payments pioneer, PayPal. The California-based company is all set to enter India with their domestic payment services as soon as the next week.
Digital Payments Sector In India Is Already Crowded
With over a dozen players operating in the digital payments space now, the market is already crowded with domestic and global companies vying for attention and acceptance. PayPal already has a well-established local subsidiary.
But, with the presence of market leader Paytm, followed by MobiKwik, Google Tez, WhatsApp, Phonepe and Amazon Pay, it will be a challenge for PayPal to get a share in India’s digital payments pie.
PayPal App For Payments
PayPal presently operates in the country only for the cross-border payments. It is used by merchants, entrepreneurs and freelancers to accept payments for goods and services sold abroad. But from next week, PayPal users will be able to download the PayPal app to make any online payments for goods or services within the country as well.
How Will PayPal Payments Work?
The company has tied up with a number of merchants to start with their operations in the country under India Pay. The PayPal India Pay option will be shown at online checkout gateways. Customers will be able to use this option to make payment with their PayPal app.
PayPal India Pay
PayPal India Pay will act as a payment aggregator for a number of services in the country. They will work with banks and merchants to facilitate digital payment services for their customers. Paypal will not operate as a digital wallet, but will use the Unified Payments Interface (UPI) infrastructure via banks to facilitate their domestic payments model. PayPal will work primarily on buyer security and safety, which is going to be a huge positive for the Indian consumers.
Make Payments Abroad
As PayPal will start their services in India for domestic payments, they will also allow Indian customers to pay with PayPal when they travel abroad, using the same PayPal app.
More PayPal Services In Future
PayPal has a wide range of services available in the United States, which includes payment gateway business, peer-to-peer payments, merchant payments, remittances, retail offline transactions and also a credit based service called PayPal Credit.
In India, the company is expected to start with merchant payments, following with their other services eventually.
Post demonetization, India’s digital payments scene has seen a massive change with a steep growth in digital transactions. Several global players are jumping in with their own payments services in India’s red-hot digital payments market. It will be interesting to see, how a globally established player like PayPal performs with their PayPal India Pay in the overcrowded Indian digital payments market.