Paypal Stops payments to India: Some Observations

If you are a freelance worker in India or somehow your work is related to internet then it is perhaps a very bad time for you because you can not carry out transactions through Paypal. Paypal is the most popular form of online transaction and they just posted an entry in Indian blog with the following message:

I’m writing to let you know that personal payments to and from India and transfers to local banks in India have been suspended while we work with our business partners and other stakeholders to address questions they have about the service.

During this time, customers can still make commercial payments to India but merchants cannot withdraw funds in Rupees to local Indian banks.

Anju is the person who put the message on behalf of Paypal. He promised to update the blog as soon as there is information. However, until now there is no update and it is really very tragic. This entry was posted on February 6. However, from some of the websites that covered the news, I can find that the problem originated on 28^th January 2010.

After reading the message of Paypal, I could not understand what the problem is. There has not been any controversy or problem regarding Paypal in India.

Many people are dependent on it because it is a very reliable way of online transaction. India is the outsourcing giant. The big companies employ thousands of workers. However, it is the freelance workers who are mainly dependent on Paypal in India.

India has thousands of people working in Internet for various individuals and companies of USA and other countries. If you take a look at the Digital Point forum then you will understand that how many Indians are working in Internet. Many of them are very unhappy and and they don’t know whom to blame. Some thought that Indian government and RBI had something to do behind this problem of Paypal. However, there has been no official reaction from either Indian government or Paypal.

So, it is not clear what the problem is. This shows the complex world that we live in now. Internet is a great place and it is helping everyone. However, when something like this happens then many people suffer. I just hope that Paypal officials understand the gravity of problem.

On the other hand, I also wish that Indian government officials try to address the problem and contract Paypal about it. Both the parties should talk to each other and solve out the problem. As I have already stated that many people in India are dependent on earning money from internet. It is helping many families and for Indian economy, it is also brining some foreign currency. So, Indian government should encourage this matter and help the freelance workers who are bringing foreign currency.

I am not sure when there will be an update about the whole issue. It is already several days and there is no official confirmation either from Indian government or Paypal. Indian freelancers are perhaps at this moment frantically searching for alternative methods of payment but the really is that Paypal is the best.