Does PayPal work in India? (all you must know)

Does PayPal work in India? (all you must know)

Subsidiaries disclose: We may receive commissions for links in this article.

Technology has made our lives easier and more convenient in many ways. A very popular technology tool is online banking and more financial tools such as PayPal.

So, since PayPal is so popular and easy to use, if you live in India, you might be wondering, can I use PayPal? I did some research on PayPal in India and here’s what I found!

Will PayPal work in India in 2022?

Fortunately, as of 2022, PayPal’s functionality does work in India. Unfortunately, PayPal recently limited its capabilities in India to international businesses only. This means that Indian citizens can still create and have personal and business PayPal accounts, but only in international transactions.

If you want to learn more about how to create and use a PayPal account in India and more, keep reading!

‌ PayPal banned in India?

Thankfully, PayPal isn’t banned in India, but its services are now restricted.

Additionally, this means that PayPal recently closed its domestic business option in India in April 2021.

PayPal describes domestic transactions as “transactions that occur when both the sender and receiver are registered with PayPal or are recognized by PayPal as residents of the same market.”

As a result, Indian citizens with personal PayPal accounts can now only shop internationally.

Additionally, users with personal accounts cannot hold, send or receive personal payments. They also cannot hold a PayPal balance or add money to their PayPal account.

Also, Indian citizens with business accounts can only sell and receive international payments internationally. Additionally, business accounts in India cannot hold a “full” PayPal balance.

Unfortunately, PayPal didn’t give any reason for this change in India.

How to create a PayPal account in India?

Although PayPal’s service in India has changed and you can no longer engage in domestic transactions, you can still have a personal or business PayPal account.

Additionally, your PayPal account functionality will be limited to international transactions.

So, to create a PayPal account in India:

1. Come on, first visit PayPal.com
2. Next, click “Sign Up”
3. Then, you need to select a personal or business account and click “Get Started”
4. After that, enter all the information requested by PayPal
   • PayPal will ask for your “country” of residence, your phone number, email address, billing address, and your first and last name
5. Finally, click “Agree and Create Account”

Now that your account is activated, you must complete additional steps to fully use your PayPal account services.

Also, even though the PayPal account in India is limited to international business, you still need to link your bank account to make international payments.

So, to link your bank account to your PayPal account in India:

1. If you are not already logged in, please log in to your PayPal account first
2. Second, go to your “Payment Methods”
3. Next, click on “Link Bank Accounts”
4. You will then need to enter your bank account information and click “Continue”
5. Finally, follow the final instructions provided to you by PayPal to complete the linking of the bank accounts

Additionally, when linking your bank accounts, you can choose to link your bank accounts instantly via your online banking information.

If you are able to link your bank account immediately, PayPal will also confirm your bank account immediately.

However, if you must manually enter your information, you must also manually confirm your account.

So, to manually confirm your bank account:

1. First, PayPal will send 2 small refundable payments to your bank account
   • It may take up to 6 days for this to appear in your account
2. Once payment is received, log back into your PayPal account and go back to “Payment Methods”
3. Then, click “Ready to confirm”, this will be in the bank account you need to confirm
4. Next, you need to enter the exact amount of the two deposits that PayPal sent to your bank account
5. Finally, click “Confirm”

Once your bank account is linked and confirmed to your PayPal account, you can use that account to send and withdraw money from your PayPal account.

Additionally, you can choose to link a debit or credit card.

Also, to link your debit or credit card:

1. First, log in to your PayPal account
2. Next, click on Manage and then on Link Cards
3. Then you need to enter your card information
4. Finally, click “Save”

Unfortunately, sometimes PayPal requires its users to confirm their debit or credit card, so if you see “Confirm your card,” you’ll have to confirm your debit or credit card manually.

If you don’t see “Confirm Your Card,” you don’t need to confirm.

Also, to confirm your debit or credit card:

1. Log in to your account and click on “Payment Methods”
2. Then, select the card you want to confirm and click “Confirm Card”
3. After that, click “OK”
4. Next, you need to follow the instructions PayPal gave you to apply for a “One Time Password”, OTP
5. Finally, after receiving the OTP, enter the code and click Submit

Additionally, once your PayPal account is active and your payment options are fully linked to your account and confirmed, you can use the PayPal India account feature.

To learn more, you can also read our posts on Visa Gift Cards to PayPal, Does PayPal Work in Canada, and Does PayPal Work in South Africa.

in conclusion

PayPal does operate in India, but in April 2021, PayPal ceased its domestic operations in India, limiting PayPal functionality to international operations only. However, PayPal did not say why it decided to limit its functionality in India.

Also, in India, you can create a PayPal account and link your payment method as usual. However, with a personal account, you can only shop internationally, and with a business account, you can only sell and receive payments internationally.