PayPal To Throw Their Hat In The Ring For UPI Payments Service In India

PayPal has reportedly decided to join the race of UPI payments in India. The world's largest digital payment processing platform could soon be competing with the likes of Paytm, PhonePe and Google Pay in India for a sizeable share of UPI payment market that recorded 1.3 billion transactions in January 2020 alone.

Must Read

Net Worth Of Jeff Bezos Is More Than Combined Net Worth of India’s Top 10 Richest People!

Jeff Bezos and the phrase 'World's Richest Person' has become synonym to each other. But after the...

Search Engine Optimization In Digital Era: Look Beyond Traffic

Search engine optimization, aka SEO, plays a vital role in today's online world, especially if it's about...

After Banning Apps, India To Clamp Down On Startup Investments From China

The recent border conflict between India and China has led to the Indian Government to actively take...

It was more than two years ago wherein Paypal, the global digital payments giant decided to launch its operations in India in a full-fledged fashion. Now, the world’s largest online payment platform is reportedly planning to move into the UPI-based payments service in India as well.

Currently, in India, only peer-to-merchant or P2M payments transactions are operational on the PayPal platform via facilities such as net banking and debit or credit cards. They have also enabled international remittances from India.


The launch of UPI transactions by PayPal is being estimated a billion-dollar business in the near future. As of now, PhonePe, Paytm and Google Pay leads the P2P UPI transactions market in India. While few other players are also leaving no stone unturned to capture a sizeable share of the UPI transactions market, startups such as BharatPe are taking an aggregator approach to enable UPI-based peer-to-merchant transactions.

PayPal had entered Indian long back in the year 2007. However, they only resorted to facilitating cross-border transactions until November 2017, which was the year when India’s digital payments industry started growing. Right now Paypal serves as a digital payments partner to several Indian shopping platforms such as Myntra, BookMyShow, Urban Company, MakeMyTrip, among others.

At present, the company is aiming to increase its reach to small and medium businesses in cities and towns which are quite similar to the strategies employed by Paytm and PhonePe currently. Paypal has also started working on a model of cluster workshops across India to further spread awareness about their services. The committee of PayPal to the digital transaction market in India is clearly visible as it participated in a $125 Mn funding round of New Delhi-based payments platform Pine Labs.

UPI In India: The Mega Industry?

In the last three years, Unified Payments Interface or UPI has become the biggest fintech success story in India. It is quite obvious that all major and global tech companies would want to tap this burgeoning segment. Therefore, much like it’s other competitors US-based payments giant PayPal is now looking to launch UPI-based peer-to-peer (P2P) payments feature to add to its presence in the Indian market. However, with the existing heavyweights in this segment such as Paytm, PhonePe, Google Pay and more, it will be quite an uphill battle for the upcoming payments platforms.

Via: GraphFarm

In the month of January 2020 alone, a whopping 1305.02 million UPI transactions valued 2,16,212.92 crores were processed by 144 banks.


In the case of PayPal, aiming for UPI-backed payments could also be considered a strategic move to revive their slumped performance in the financial year ending March 31, 2019, in India. Paypal faced 3.5X surge in losses despite 2.5X growth in revenue. At the same time, the company’s expenses grew 1.53X.

UPI Transactions India: Tough Battle

PayPal is not the only new entrant in the UPI market of India. The mobile messaging platform giant WhatsApp is also giving a shot to launch their own UPI-based payments service on their existing platform. WhatsApp was reportedly testing their UPI-powered payments since 2018. However, they suffered a lot of resistance due to obvious roadblocks from competitors, government bodies, and other regulators since then.

It has been reported that earlier this month, the launch of WhatsApp Payments was finally approved to roll out by the National Payments Corporation of India (NPCI), but in a phased manner. 

WhatsApp’s Payments platform will be cleared for a full rout one they have checked all the pending compliance points. However, as of right now, under the ‘phased’ roll-out plan, WhatsApp Payments will only be able to offer its services to a handful of 10 million initial Indian users. It has also been reported that Uber is also planning to go the UPI-route. Plans to launch their own digital payments platform called ‘Uber Money’ powered by UPI by 2020 are reportedly in motion.


Please enter your comment!
Please enter your name here

Latest News

The Leaked Video Of Pixel 5 Is Quite Revealing!

Google never stops to surprise us, and Pixel 5 is no different. A recent leaked video of...

A New Xiaomi 108MP Camera Smartphone May Debut Soon!

In November 2019, Xiaomi propelled its first smartphone with a 108MP camera. In the last six months, the smartphone major has launched...

Instagram Reels In India: A Possible Death For The Indian Alternatives Of TikTok?

After the Indian Government banned the popular short-form video app TikTok along with 58 other Chinese-origin apps, many ‘homegrown’ or Indian-made Tiktok...

How People Set Their Passwords: 123456 Is The Most Common One [STUDY]

Do you know why hackers quickly gain access to your system or online accounts? It's because the passwords are...

Will The Ban On TikTok Be Revoked?

The ban on TikTok is the talk of the town. All hell broke loose for Tiktok when the popular short-form video platform...

Global 5G Chipset Market: $22.41 Billion By 2026, Driven by 5G Smartphones

As the world has started shifting from 4G to 5G era, the global 5G chipset market has started attracting the eyeballs of...

In-Depth: Dprime

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

Fantastic 4: Four Day Work Week A Flashpoint Of Innovation?

It has been an idea that has been mooted by many, perhaps also somewhat sceptically. From being a dark horse to becoming...

TikTok Is Facing The Wrath Of People Who Love It The Most

Ever since the popular social media app TikTok entered India, it has been growing very aggressively in terms of users. Within a...

More Articles Like This