Launched in India in 2017, PayPal now is opening a tech center in Hyderabad, after following mandates by the Reserve Bank of India (RBI), to make sure all data is stored exclusively on local servers. The new tech center will be PayPal’s third technology center in India that will focus on data science, risk management, and machine learning to assist businesses to secure themselves from deception.
In the report, Vice President and Head of Engineering at PayPal India, Guru Bhat says, “As part of our operating set-up in India, we work with a lot of partners and we are working with them with the proposal right now on how to enable this for the country.”
In April last year, the RBI set a 6-month deadline for payment firms to comply with data localization. According to the report, data is generally stored on global servers but in India, policymakers said data localization would help in monitoring and conducting investigations if the need arises.
In 2018, PayPal acquired the fraud prevention platform Simility that offers merchants customized fraud tools. The company at that time said in the blog post, “Digital commerce has exploded, and fraudsters have taken note, adapting and developing new methods to carry out their crimes. PayPal has been at the forefront of developing innovative fraud prevention and risk management solutions for nearly 20 years, and is uniquely positioned to help merchants fight this threat.”
As part of opening new tech center in Hyderabad, Bhat states, “India is a key growth market for PayPal and the opening of our global technology center in Hyderabad, the heart of innovation and technology in India, marks a significant milestone on our journey.”
In January this year, PayPal India reported that it experienced a more than twelvefold increase in revenue, reached Rs 260 crore in 2018 from Rs 21 crore in 2017. Consequently, a source familiar with the matter said at that time, the company has increased its investments in India, including a boost in technology augmentation, hiring new employees in the country and opening a new office in Mumbai.
To propel its business in India, PayPal established various collaboration and partnerships with a number of local online merchants including BookMyShow, MakeMyTrip, Yatra, Goibibo, FreshMenu, and Box8. The American online payment platform also embarked on two new innovation labs in India to focus on technology such as digital payments, artificial intelligence, and virtual reality, using the labs to benefit India’s economy.
Google also launched a localized payments app for India in 2017, as it sees the immense growth of online payments system in India will increase rapidly for the next coming years. The online payments industry in India is expected to rise tenfold to $500 billion by 2020. It is also anticipated that more than 80% of India’s urban population and 70% of the retail chains will adopt digital payments as a part of their routine throughout the projected time frame.