PayPal India’s total transaction value jumped 40% from a year earlier in the June quarter as small businesses sold goods and services to overseas consumers amid the second wave of covid , said a senior executive.
Services exports were the main driver of volume growth, particularly supported by large electronics technology companies and online tutors, tech freelancers, small software as a service (SaaS) platforms and women entrepreneurs in the wellness and health segments.
Parent company PayPal Holdings Inc., which closed its local payment services business in April, is focusing entirely on international sales for small and medium-sized businesses. PayPal offers its payment gateway to Indian brands and online merchants and provides international money transfer services to small and medium businesses, including exporters, in the country.
In 2020, PayPal India achieved a total payment volume of approximately $ 1.4 billion with nearly 360,000 small exporters.
“Our focus on cross-border trade and small and medium-sized businesses is paying off. Even when the first wave hit us in 2020, we saw 25% growth in export volume. Small-value exporters, which sell online and to international consumers, continue to grow very rapidly despite the pandemic. If they use PayPal for payments, their growth is manifold. The beauty of digital commerce is that almost the entire experience is digital except when goods physically travel and provide better margins, ”said Nath Parameshwaran, Senior Director of Corporate Affairs, PayPal India, in a statement. interview.
PayPal India currently works with merchants in 1,500 cities and towns.
In service exports, Indian tech freelancers have the highest hourly billing rates of $ 80 and are sought after for search engine optimization, website building, remote computer systems troubleshooting for business purposes. ‘other small businesses, running marketing campaigns with high-end data analytics.
The big driver of growth, however, has been edtech, both large companies and individual tutors. Edtech startups, which have set up portals to serve overseas consumers, use PayPal to receive payments. Currently, PayPal works with UpGrad, Eruditus, WhiteHat Jr., Toppr, Unacademy, among others.
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