PayPal Suspends Some Transactions in India

By Geoff Duncan February 8, 2010

Image used with permission by copyright holder

Online payment processing service PayPal has announced that it has suspended some transactions in India while it works with partners to “address questions they have about the service.” Paypal customers can still make commercial payments to India, but merchants are not able to withdraw funds to local Indian banks in rupees.

Some reports have Paypal suspending some transactions as of late January.

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The move has left many merchants and customers in a lurch: for instance, customers who used PayPal to purchase tickets to events to be picked up at the venue will be able to attend performances because the seller has not received funds for the purchase. Similarly, although merchants have to provide proof of delivery to receive a payment to their PayPal account, they can no longer withdraw funds from local banks.

Some merchants report that PayPal is also reversing some transactions.

There is no information on when PayPal anticipates being able to lift the suspension.

According to some metrics firms, India’s retail e-payment marketplace is one of the fastest-growing on the planet, and is expected to total between $150 and $200 billion in 2010.

Former Digital Trends Contributor

Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…

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