PayPal Suspends Personal Payments in India

by CXOtoday Staff    Feb 08, 2010

US-based online payment company PayPal, has suddenly decided to suspend the ability to send personal payments to and from India. The company has not cited any particular reason for this move. All that has been mentioned, on the PayPal Blog, is that they are in the process of resolving the situation and working with their business partners and stakeholders to address questions they have about the service.

The move to block personal payments to and from India was apparently a sudden one, even leaving commercial payments in no-man’s land. Although merchants must provide proof of deliver in order to receive a payment to their PayPal account, they too will not be able to withdraw this amount from local banks.

Customer feedback of the inconvenience caused, pegs the lack of providing an early notice of such a move, has resulted in a stalemate — in one case, customers have booked tickets online, which are to be collected at the venue, but the merchant has not received the amount in his PayPal ID because he is unable to provide a ‘proof of delivery’ of the tickets sold.

Surprisingly, the only notice of disabling personal payments to and from India is a post by the India spokesman, Arun Nayar, on the PayPal blog. On searching other blogs, it appears that while the news from Nayar was dated 6th February, the personal payment suspension was in fact effective post-28th January.