This article explains everything about using PayPal in India – the features, how to sign up, link a credit card/debit card/bank account, and then verify it.
Global digital payments service PayPal is gaining popularity in India. PayPal has been in India for a while. But now it’s expanding the range of services offered.
While PayPal still offers a limited range of services in India (compared to other parts of the world), it is likely to grow.
What services does Paypal offer in India?
You can use Paypal in the following ways –
- To make online payments on websites like MakeMyTrip, BookMyShow, Yatra, and ChaiPoint. The PayPal payment option will be available on these sites when making a purchase. As of now, PayPal is also offering some exclusive discounts for payments made through it.
- To accept international payments online. This feature is extremely useful for freelancers to accept overseas payments. PayPal is a trusted and easy to use option. After receiving funds in your PayPal account, you can withdraw the money to your bank account. PayPal also gives the option of creating and sending invoices to your customers. This simplifies the process even further.
- To shop from overseas websites. You can pay via PayPal using your debit or credit card. PayPal offers lots of benefits like buyer and seller protection, return shipping, etc.
- To send money. Currently, this feature is available only for overseas payments.
Restrictions for PayPal users in India
These are some of the restrictions faced by PayPal users in India:
- RBI guidelines don’t allow you to store money in your PayPal account. So you can’t directly use funds received in your PayPal account for online payments. You have to first withdraw them to your bank account. Because of this you have to pay conversion fees twice.
- You can’t send/receive payments from another PayPal user in India.
How to create a PayPal account in India?
Creating a PayPal account is very simple, and really useful. You can sign up for free. We will cover all the steps, but first you have to choose which type of account you want to open.
Types of PayPal Accounts
There are two types:
- Personal/Individual Account – This is a basic account. You can use it to shop as well as receive money. If you are a beginner freelancer, you can simply make a personal account. If needed, you can upgrade to a business account anytime.
- Business Account – This type of account offers many additional features for businesses.
To create an account, please follow the given steps:
- Log on to the official PayPal website.
- Click on ‘Sign Up’ on the top – right hand corner.
- Select the type of account you want to open, and then click on ‘Next’.
- Now you have to enter your email address and create a password.
- That’s it, you now have a PayPal account. You can access your dashboard, and check out all the features.
Using PayPal in India
To shop/send payments, you can link your debit card and get started immediately.
However, to receive payments, you have to do the following:
- Confirm your email address – When you sign up, PayPal will send you an email to confirm your account.
- Link you PAN card – The name on your PAN card must match your PayPal account name. If you are a minor and don’t have a PAN card, you can open an account in your parent’s name.
- Link a bank account – This will be the account you withdraw funds into.
- Choose a purpose code – A purpose code indicates the type of business for which you are receiving the payment. (This will be your default code. You can choose a different code when receiving a particular payment.)
To link your debit/credit card, please follow the given steps:
- Log in to your PayPal account.
- Go to your dashboard/account overview.
- Click on ‘Link a card’ under ‘Banks and cards’.
- Now enter the required card details.
- You have to make sure that your card is activated for international transactions. If it is notactivated, please call your bank to do so.
- You can also add more than one card, or remove an old card.
How to verify your card?
Sometimes card verification is required. It can be done very simply as shown below.
This process is very similar to adding a card. You have to enter your name, bank account number and IFSC code.
PayPal automatically sends the money in your PayPal account to your bank account. But you can also manually withdraw the funds.
How to confirm your bank account?
After entering your bank details, to confirm your bank account, PayPal sends 2 small deposits into your bank account. Once you receive the deposits, you have to enter the amount of your deposits to verify your bank account. This process usually takes 2-3 days.
Can you open multiple PayPal accounts?
- Yes, you can open one Personal/Individual Account and one Business Account.
- But the two accounts must have different email addresses.
- Also, you cannot link the same debit card, credit card, or bank account to the two different accounts.
How to contact PayPal India customer care?
- You can call customer support for PayPal in India at 1800 419 9833 (9am to 9pm).
- If you are a merchant, you can call customer support for PayPal in India at 1800 121 1001 (10am to 5pm, Monday to Friday).
To read about how to make a Paytm account, please click here.