PayPal creating problems for users in India

February 8th, 2010

In the fast few days there have been numerous posts all over the net about payments being stopped and some being reversed for Indian customers. PayPal has also made an official statement in their blog about the same. In affect PayPal has stopped processing payments made to Indian accounts which are personal in nature. If you have a PayPal account which is verified as an Indian account, you could still get payments from your customers abroad, however they have to be made as Goods sold or Services rendered and cannot be done as personal.

This might just be another step in curbing money laundering, that is what i think. Last month PayPal stopped adding US bank accounts to customers with Indian address. I agree that this will put an end to lot of false accounts created for suspicious purposes but this will also affect a lot of genuine users and merchants. India is emerging as one of the biggest markets in the world and in the coming years it will also emerge as a leader in online transactions but if such hijacks continue on Indian payments the future will not look so good.

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