PayPal’s Indian revenue increased 12 times
Whereas PayPal (PYPL) operates in more than 200 countries, the company doesn’t release its revenue metrics for each country. However, regulatory filings cited by The Economic Times show that PayPal’s Indian revenue rose 12-fold in fiscal 2018, to $37 million from $3.0 billion year-over-year, while profits from its Indian unit rose modestly, to ~$0.3 million from ~$0.2 million. Although these figures are just up to calendar 2018’s first quarter, as India’s fiscal year ends in March, the figures still highlight the country’ robust growth.
Domestic operations in India
PayPal launched domestic operations in India in November 2017 after years of focusing only on cross-border transactions. The domestic launch followed Google’s introduction of a localized mobile payment service for India, Tez, which it rebranded as Google Pay last year in preparation for rolling out the service in more countries. As its sales soar in India, PayPal is making more investments in the country, such as opening more offices and adding to its workforce.
No shortage of competition for PayPal in India
PayPal faces a bevy of competitors in India. Amazon (AMZN), one of the top e-commerce companies in India, has an in-house payment service through which it processes transactions for sellers on its marketplace. Walmart-owned (WMT) Flipkart, another top Indian e-commerce provider, has its own digital payment service, PhonePe.
PayPal’s other Indian rival is Paytm, the leader in India’s mobile payment market. Paytm is backed by deep-pocketed corporate investors such as Alibaba (BABA) and Berkshire Hathaway (BRK), which last year invested around $350 million for a small stake in the business.