Technology has made our lives easier and more convenient in many ways. One very popular technological tool is online banking and more financial tools, such as PayPal.
Therefore, because PayPal is so popular and easy to use, if you live in India you may be wondering, can I use PayPal? I’ve done some research on PayPal in India, and here is what I have found!
Does PayPal Work in India In 2023?
Fortunately, PayPal’s functions do work in India as of 2023. Unfortunately, PayPal has recently limited its functions in India to only international business. This means citizens of India can still create and own individual and business PayPal accounts, but they can only take place in international transactions.
If you want to learn more about how to create and use a PayPal account in India and more, then read on!
Is PayPal Banned in India?
Thankfully, PayPal is not banned in India, however, its services are now limited.
Moreover, this means PayPal has recently, as of April 2021, shut down its domestic business options in India.
PayPal describes domestic transactions as, “A transaction occurring when both the sender and receiver are registered with or identified by PayPal as residents of the same market.”
Therefore, citizens of India with a personal PayPal account can now only shop internationally.
Additionally, users with personal accounts cannot hold, send, or receive personal payments. They also can’t hold a PayPal balance or add money to their PayPal account.
Furthermore, Indian citizens with a business account can only sell internationally and receive international payments. Moreover, business accounts in India can’t hold a “full” PayPal balance.
Unfortunately, PayPal has not given any reason for this change in India.
How do I Create a PayPal Account in India?
Even though PayPal’s services in India have changed and you can no longer partake in domestic transactions, you can still own a personal or business PayPal account.
Moreover, your PayPal account functions will be limited to international transactions.
Therefore, to create a PayPal account in India:
- Go ahead and start by going to PayPal.com
- Next, click “Sign Up”
- Then, you need to select either an Individual or a Business account and click “Get Started”
- After, enter all the information PayPal asks for
- PayPal will ask for the “Country/region” where you live, your phone number, email address, billing address, and your first and last name
- Finally, click “Agree and Create Account”
Now that your account is active, you have to complete a couple more steps to be able to fully use your PayPal account services.
Additionally, even though PayPal accounts in India are limited to only international business, you still need to link your bank account to be able to make international payments.
Therefore, to link your bank account to your PayPal account in India:
- If you aren’t already logged in, start by logging in to your PayPal account
- Secondly, go to your “Payment Methods”
- Next, click “Link a bank account”
- Then, you need to enter your bank account information and click “Continue”
- Lastly, follow the final direction that PayPal gives you and finish linking your bank account
Furthermore, when linking your bank account you may have the option to instantly link your bank account through your online banking information.
If you were able to instantly link your bank account, PayPal will also instantly confirm your bank account.
However, if you have to enter your information manually you will also have to confirm your account manually.
Therefore, to manually confirm your bank account:
- First, PayPal will send 2 small refundable payments to your bank account
- This may take up to 6 days to show up in your account
- Once you receive the payments, log back into your PayPal account and go back to “Payment Methods”
- Then, click “Ready to confirm”, which will be in the bank account you need to confirm
- Next, you need to enter the exact amounts of both deposits PayPal sent to your bank account
- Last, click “Confirm”
After your bank account is linked and confirmed to your PayPal account you can use that to send and withdraw money from your PayPal account.
Additionally, you also have the option to link a debit or credit card.
Furthermore, to link your debit or credit card:
- First, log in to your PayPal account
- Next, click “Manage” and then click “Link a card”
- Then, you need to enter your card information
- Finally, click “Save”
Unfortunately, sometimes PayPal needs its users to confirm their debit or credit card, so if you see “Confirm your card” you will then have to confirm your debit or credit card manually.
If you don’t see “Confirm your card”, you then don’t have to confirm it.
Moreover, to confirm your debit or credit card:
- Log in to your account and click “Payment Methods”
- Then, choose the card you need to confirm and click “Confirm card”
- After, click “OK”
- Next, you need to follow the instructions PayPal gives you to request a “One Time Password”, OTP
- Lastly, once you receive the OTP, enter the code and click “Submit”
In addition, once your PayPal account is active and your payment options are fully linked and confirmed to your account, you can then use the PayPal India account features.
PayPal does operate in India, however, in April of 2021 PayPal stopped its domestic business in India limiting PayPal functions to international business only. However, PayPal did not give a reason as to why it decided to limit its functions in India.
Furthermore, in India, you can create a PayPal account and link your payment methods like normal. However, with a personal account, you can only shop internationally and with a business account, you can only sell and receive international payments.