Processing fee payment for Indian schools
PayPal (PYPL) hasn’t rested since it launched domestic operations in India in late 2017. In addition to facilitating payments for Indian consumers purchasing from local retailers, PayPal is expanding into a new vertical in India’s payment sector: education.
According to a report from YourStory, a startup-focused media outlet in India, PayPal has identified an opportunity in processing payments for Indian schools and online learning portals. The busy lives of Indian parents and educators mean that there’s a need for simpler and more convenient school fee payment methods, and PayPal has identified this as an opportunity. PayPal’s platform allows people to transfer funds or pay for purchases at any hour of the day without leaving home.
According to the report, the education sector in India is worth $215 billion per year, suggesting a huge growth opportunity for PayPal in the country.
PayPal is battling it out with Google (GOOGL), Alibaba (BABA), and Amazon (AMZN) in India’s digital payment market. In 2017, Google launched its India-specific mobile payment service, Tez, which it expanded and rebranded as Google Pay last year. On its part, Alibaba backs Paytm, the leading mobile payment service in India. Last year, Berkshire Hathaway (BRK) also threw its weight behind Paytm, investing close to $360 million for a small stake in the business.
Amazon, one of India’s top e-commerce providers, has an in-house payment service called Amazon Pay through which it facilitates payment transactions between shoppers and sellers on its marketplace.
Credit Suisse expects India’s digital payment market to grow fivefold to $1.0 trillion by 2023.