Why is PayPal struggling

PayPal is struggling in India primarily due to regulatory challenges and intense competition. The platform has faced restrictions from the Reserve Bank of India, limiting its ability to operate domestically, and its high transaction fees (often 3% to 4% plus currency conversion markups) make it less competitive compared to newer alternatives. Many users have also reported slow transfer times and unfavorable exchange rates, prompting freelancers and exporters to explore better options.

For a detailed PayPal overview and comparison, Indian exporters and freelancers are increasingly switching to platforms like Skydo, an RBI-authorised cross-border payments solution that offers faster transfers, transparent pricing, and competitive exchange rates. Skydo is specifically designed for the Indian market, addressing many of the pain points that have contributed to PayPal's difficulties in retaining users in the region.