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PayPal Funds Transfer Within India Soon With Domestic Payment Approval

In spite of so many restrictions, PayPal remains a popular choice of online payments. Recent news says that PayPal has received an approval for Domestic Transfer in India. It means, customers in India will be able to use PayPal to make payment to a merchant based in India. In other words, an Indian would be able to transfer money to other Indian’s PayPal account or do PayPal to WebMoney transfers more easily.

According to an internal e-mail sent by PayPal India GM, PayPal is now authorised to offer domestic payment processing services in India, and that the solution can be offered for online, mobile, offline (PayPal Here), for all industries as permitted by law. (source РMedianama)

Current PayPal Restrictions in India

PayPal RBIPayPal is available in India for both merchants and customers however, there are may restrictions placed by RBI.

Benefit to Indian Merchants And Freelancers

For Merchants with a target customer base as India has to opt for NEFT (Bank Transfer) or implement a Payment gateway on their website like CCAvenue to accept payments. This is because domestic transfers are only possible only through banks at the moment.

NEFT is more of a manual/laborious thing whereas installing payment gateway is a pricy affair. On the other hand, implementing PayPal payments on webpage is as simple as adding a banner and moreover Free.

If you have opened up a small e-commerce store (planning to sell items as small as ebooks) or provide online consultancy/web services, PayPal would make things easy. Yes, it will be possible to accept payments as you used to receive in 2010.

What Isn’t Clear?

As per the news, domestic payments in India via PayPal is approved. One thing isn’t clear whether a customer will be able to use funds in PayPal for transaction or credit card will be necessary.

Also, the date when domestic PayPal transfer in India will come to take effect isn’t mentioned. When Medianama asked PayPal about it, they neither confirmed nor denied the news.

Benefit To Customers

Indian customer is now flooded with payment options and people are now more used to Internet Banking. Domestic transfer using PayPal will be a real improvement if they allow use of funds in PayPal for transaction. Otherwise, we can directly use Credit Cards on Payment gateway.

It will be interesting to see when PayPal opens office in India and ties up with banks in India to give competition to existing payments gateways and other mobile money transfer platforms.

Click Here to Leave a Comment Below 7 comments
amit - October 13, 2012

will paypal ties up with e currncys ? like liberty resrve, solidtrustpay , payza ????

    Rohit Langde - October 13, 2012

    Nope. PayPal won’t tie up with any of their competitor.
    News is that they have tied up with EBS which is a leading payment gateway in India.

PrIyAnGsHu - October 16, 2012

That’s a great news Rohit. But is the auto withdrawal to bank service now stopped ?

    Rohit Langde - October 16, 2012

    Nope. According to RBI guidelines, PayPal still cannot keep funds with them for more than a day. So, Auto-withdrawal is still there.

weblocker - November 28, 2012

what is the best method to take money out By paypal through banks or by e checks?

    Rohit Langde - November 29, 2012

    Bank transfer is faster and preferable.

nuzzo - April 14, 2016

If I cannot get my own card to verify my account. Do you think buying a vcc from Auction Essistance would be a good idea?


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