Paypal had major plans to grow in Asia. Though successful in most Asian countries, India has always been a problem for Paypal. Though the online payment gateway giants have been in the country for more than 2 decades, RBI have been causing them a lot of grief. And the final nail in the Paypal coffin in India might just be their notification to Indian customers that electronic withdrawals will not be allowed, and that withdrawals will only be allowed through cheques.
For the past few months, Indian Paypal users have been frustrated with the E-wallet company, with Paypal blocking personal payments to and from India. This came about as RBI had issues with Paypal working as an offshore money transferring company. Now this new announcement is definitely going to be a blow to Paypal in India.
As a saving grace, Paypal have offered to not charge $5 cheque withdrawal charges to any cheque withdrawal requests made after 29th July 2010. Though they assure to be working on the electronic withdrawal service, it still seems some time away before Paypal can finally meet the requirements of RBI.
For those who always went the electronic way, this is how to make a request for a cheque withdrawal:
- Log into your PayPal account, click on ‘Withdraw‘.
- Click on the ‘Request a cheque from PayPal‘ link.
- Enter the withdrawal amount and select your mailing address, then click ‘Continue‘.
- Click ‘Submit‘ to confirm your request.
WIth Paypal facing problems on this front, and discomfort of the Indian audience just increasing, isn’t it high time to introduce an Indian e-wallet service? Wallet365 was introduced by Times of India but was immediately asked to stop by the RBI. Some of the Indian payment services that do exist right now are:
The question still remains if users can trust other payment gateways as much as Paypal. As of now, it definitely looks like Indian customers might look for alternatives and not keep sitting around, waiting for Paypal. Will you look for other payment options or will you remain a Paypal faithful?