Google offers India-specific mobile payment service
PayPal (PYPL) has partnered with India-based multinational lender HDFC Bank in a move that could help accelerate its expansion in the Indian market. PayPal’s launch of domestic services in India came a few months after Alphabet’s (GOOGL) Google launched an India-specific mobile payment service called Tez, a PayPal rival.
Lender serves 35 million cardholders domestically
The deal with HDFC Bank is aimed at delivering a safer and faster online payment experience to the bank’s customers. The partnership is expected to stimulate digital spending in India, particularly among HDFC Bank cardholders. The lender has over 35 million payment cards in use across India. HDFC Bank cardholders are expected to enjoy more convenience when buying from PayPal’s nearly 20 million merchants around the world.
India is a competitive market
The deal with HDFC Bank also comes only a few months after PayPal teamed up with other investors to put $125 million in India-based payments startup Pine Labs.
Pine Labs sells payment terminal devices that allow small businesses to accept card payments. It also extends loan services to small businesses. Square (SQ) offers similar services to its customers, but it hasn’t launched operations in India yet. So a partnership with Pine Labs could give PayPal a head start in India against Square.
But PayPal has more competitors to battle in India. Amazon’s (AMZN) Amazon Pay service is already available in India. Amazon Pay processes payments for merchants on Amazon’s online marketplace. Alibaba (BABA) is also big in India, where it backs Paytm, a leading e-commerce and mobile payments company in the country. Paytm has said that it now handles more than $4.0 billion worth of transactions every month.
PayPal’s international revenue jumped 18% year-over-year to $1.7 billion in the second quarter.