Online payments in India are led by national infrastructure such as NPCI's UPI and RuPay, and global wallets hold a relatively smaller footprint. PayPal itself withdrew from domestic payments in India in 2021, and today its use is centered on cross-border transactions where Indian users pay overseas merchants. Still, IT professionals, freelancers, and others in India accustomed to paying abroad continue to use PayPal accounts, so it retains value as a supplementary method for Korean merchants.

It is therefore more realistic to approach PayPal not as the core of an India-specific strategy, but as a common method for businesses running a global site that serves customers across multiple countries including India. If domestic sales in India make up a large share of revenue, we recommend establishing UPI and net banking as the foundation, running PayPal alongside them for customers who prefer overseas-style payment.

The consumer logs into their PayPal account and approves the payment using a card or bank account linked in advance. For cross-border transactions linked to cards issued in India, approval rates may vary depending on RBI's rules for international transactions, such as whether international usage is enabled on the card. Once payment is complete, Hecto Financial receives the funds based on the local currency, converts them, and settles to the Korean merchant in whichever currency—USD, KRW, or JPY—was selected under contract.

Through Hecto Financial, PayPal acceptance can be reviewed on the basis of a Korean corporate entity, but for the Indian market specifically, this must be considered against the structural limitation that domestic payments are not supported. Depending on the share and average order value of your Indian customers, please design a combination with local methods such as UPI together during consultation.

• Business registration country

  Confirm contract eligibility as a Korea-registered business

• Sales channel

  The integration approach differs depending on whether you sell online only or also operate offline stores in India

• Product category

  Advance confirmation is needed to check whether your category falls under PayPal's restricted merchant categories

• Local regulatory compliance

  Confirm compliance with India's payment and foreign exchange regulations (see official sources below)

For transactions processed through PayPal, Hecto Financial receives the funds in the local currency (INR for INR-denominated transactions), converts them, and settles to the Korean merchant in whichever one currency—USD, KRW, or JPY—was selected under contract. The settlement cycle and fee rate follow contract terms. Refunds are also subject to PayPal's own buyer protection and dispute procedures, so it's advisable to have a dispute response process in place in advance.

• Reserve Bank of India (RBI)Official information on India's payment systems and related regulations. If actual regulations differ from the content of this page, the official source takes precedence.