PayPal India sees 40% jump in value of cross-border transactions in April-June 2021
PayPal India, an online payments company, saw a 40 per cent jump in the value of export transactions processed through its platform for the goods and services (mainly small value) exported by Indian MSMEs during the April-June 2021 period, a top official said.
This robust growth in export volumes processed on a year-on-year (Y-o-Y) basis has been driven by two sectors — services sector and fashion, Nath Parameshwaran, Senior Director-Corporate Affairs, PayPal India told BusinessLine. Small value services exports led by traditional freelancers, edtech, and wellness tech besides slew of other set of services with good base of women entrepreneurs coming into it are propelling this export growth.
“We are seeing a kind of silent revolution in small value services exports out of India. Services exports excellence by big boys are well known but not the services by small value service providers. Our freelancers are leading the world,” Parameshwaran said.
Growth momentum
Parameshwaran also expressed confidence that the ongoing growth momentum will be sustained in the coming quarters as holiday season kicks in developed world in next few month. “I am equally bullish about small value services exports and fashion related goods doing well in the coming quarters,” he added. He highlighted that several small businesses in India — coming out of the pandemic — are undergoing digital transformation and gearing up to serve customers in markets abroad.
Going forward, PayPal India will focus energies on addressing the growth opportunities in the Software-as-a-Service (SaaS) segment this fiscal, he added. “SaaS is an emerging vertical we are focused on. There is a recent industry study which has estimated that SaaS could be a $75 billion opportunity for our SaaS service providers in the next three years. Payments could play an important role here and we want to play a similar role as what we did in the edtech sector,” Parameshwaran noted.
PayPal India has remained unscathed by the Covid-19 induced lockdowns, in both the first as well as second wave, riding on the sharp increase in digital adoption across the world and surge in number of active users of its platform as well as higher activity in the recent years. In the second quarter (April-June 2021), PayPal’s total cross border trade payment volume at a global level stood at about $51 billion. In the same period the previous year, PayPal’s total cross border trade payment volume was over $37 billion.
The article was first published on The Hindu Business Line