PayPal cuts forex commission for SME exporters by 40%
Global digital payments company PayPal on Wednesday said it has cut its forex conversion mark-up by up to 40 per cent to benefit small exporters.
“We have given our percent discount on the total fees. What that does is...for a small merchant, this will translate to about 30-40 per cent discount,” PayPal India’s Country Manager and Managing Director Anupam Ahuja said on the sidelines of a company event here.
He said the exporter will have to choose the option while transacting on the website. The company charges a mark-up on the forex transaction, apart from processing charges, which may range from 2-4 per cent, he said. Ahuja claimed one-third of the country’s export earnings pass through its gateway and added that it wants to deepen its presence in the segment. It launched a dedicated service targeted at the country’s 18 million-strong freelancers, wherein they will be able to receive money in a secure way within seconds by passing only a web link to the payee.
Globally, the company processed a total payment volume of $300 billion in 2015 and has been growing at 20 per cent, Ahuja said, declining to share the same for India. Asked about its domestic plans, he said, “India as an opportunity is not lost on PayPal. We are looking at the right way and right time to come to India. It is not a question whether we will come to India or not. It is a question of how, what and when.”
The company only handles cross-border transactions at present, but is not present in the growing domestic market. The e-commerce market in the county has grown to about $50 billion, while other segments like e-wallets are expanding rapidly. Meanwhile, the company also disclosed the findings of a survey it commissioned, which said that 82 per cent of Indian millennials shopped abroad in 2015.