PayPal is pulling its domestic payments business in India.
The company said that the decision to close down is a result of its changing priorities. It didn't elaborate.
PayPal entered India fewer than four years ago. In its latest financial report PayPal said it had about 360,000 merchants in India.
The company said all other services - including cross-border and international payment services - will remain.
"From April 1 we will focus all our attention on enabling more international sales for India businesses and shift focus away from our domestic products in India. This means we will no longer offer domestic payment services within India," PayPal said.
Since it established its domestic business in India the company has developed partnerships with several brands - including food delivery platform Swiggy and ticketing services BookMyShow.
PayPal said in a statement it was working to minimize the effects of its decision on employees. The company said it had reassigned some employees to new teams. PayPal said it hadn't reduced its workforce and was hiring more.
PayPal said it would continue to invest in product development. The company reiterated its commitment to helping the India economy "return to growth."
Experts said PayPal may be shifting its priorities after it failed to make reasonable inroads. In recent years, India has become one of the world's largest markets for mobile and digital payments companies.
Amazon, Google and Facebook have been competing for market share in India. Analysts suggest the country's digital payments market could be worth more than $1 trillion by 2023.
