Update: Check out paypal’s purpose codes for freelancers and IT professionals here.
Paypal the online payments system has stopped working for India payments to and from. This has caused a lot of issues especially for IT developers who used to freelance for foreign markets and charge purely via the use of Paypal. Reports have been pouring in of several users whose transactions have been reversed.
Following is the standard reply that PayPal is sending to customers:
“Your payment of xxx has been sent back to the sender of the payment. We reversed this payment because we have stopped allowing personal payments to be sent to or from India.
“If this was a payment for a purchase of goods or services, and not a personal payment, then you may contact the buyer and have him or her resend the payment as follows: (a) click the Send Money tab, (b) select “Goods,” and (c) provide a shipping address.
“If this payment was a personal payment such as a gift, then we have requested that the sender find another payment method until we restore personal payments to and from India. We are trying to resolve this issue as quickly as possible and we’re sorry for any inconvenience.”
Techcrunch reports that Paypal has confirmed that personal payments to and from India have been suspended. There is no word though on why and for what concern was this step taken by Paypal.
The ewallet systems in India are governed by RBI and as you might know a Paypal like system in Wallet365 which was announced in 2006 was shut down due to RBIs directives. Offlate RBI has taken a kinder view towards mwallet and ewallet systems and also announced higher transaction amounts for the same.
As one can see from this particular incident Indians definitely need an Indian alternative for peer to peer payments both from India and from abroad. Too bad RBI is still to give a full green signal to a Paypal like system in India. But who knows after Paypal has stopped its shop the lobby for India payment services providers might just coax RBI to change its mind. Lets wait and Watch I say!