To start trading in the biggest financial market in the world, which is the forex market, the first thing you need to do is open a trading account with a forex broker. Once you fund the account with an initial deposit, you may start to buy and sell currency pairs. Now, there are various deposit options, like bank wire transfer, using credit or debit cards, or using electronic wallets.
PayPay Corporation is a company based in Japan that develops electronic payment services. Established on June 15, 2018, PayPay is the largest Japanese mobile payment app currently. If you are an Indian trader, you may be wondering, “Shall I use PayPay for forex trading India?” Well, let’s try to find the answer to that.
Important Things to Consider about Deposits and Withdrawals
To choose the payment methods for a brokerage account wisely, you need to consider these things –
- Processing time: There is nothing more frustrating than waiting for a transaction to take place when you can see a good trading opportunity right in front of your eyes but cannot grab it because of a lack of funds in your trading account. So, check which payment option takes the least processing time on your forex broker before initiating a deposit.
- Fee: Before you choose a payment option, you need to check how much deposit or withdrawal fee you will have to pay to use that option with your broker. Keep in mind that fees and commissions eat your profit away. So, it is absolutely important to keep fees at a minimum.
- Amount of transaction: Lastly, forex brokers sometimes offer different deposit sizes for different payment methods. The amount of transaction may affect the funds you need to deposit initially and how much profit you will get during withdrawals. So, this is also something that you need to consider before choosing your payment option.
Why Is an E-Wallet Suitable for a Trading Account?
You can trade forex universally 24 hours a day and the currency pairs fluctuate constantly. So, it is crucial for traders to act within seconds, which also includes adding funds to the accounts fast with minimal costs. The main reasons traders prefer electronic wallets are because they are mobile-friendly, fast, and convenient compared to other payment options. The advantages of using electronic wallets are –
- Lower transaction fees: Fees on most e-wallets are significantly lower than money transfer through third-party providers or bank transfers.
- Quick processing time: Usually, digital wallets transfer money from an account to a brokerage account or online trading platform almost instantly.
- Various payment options: Most e-wallets offer many ways for deposits and withdrawals, such as Visa and MasterCard, bank wire, and cryptocurrencies.
- Advanced safety: Digital wallets offer safe and secure payment options with multiple safety protocols.
What is PayPay? – What Are Its Characteristics?
The Japanese company PayPay Corporation was launched as a joint project of SoftBank Group and Yahoo Japan. The mobile payment app has more than 40 million users currently with over 2 billion annual transactions. In October 2018, PayPay got in collaboration with Indian digital payments firm Paytm. This collaboration allowed the company to start a barcode and QR code-based payment service, while Paytm started providing technical support to the app. To know more about PayPay, you may visit the official website by clicking on this link: https://paypay.ne.jp/.
PayPay Mobile App is available for both Android and iPhone users. You may download the iOS version from here: https://apps.apple.com/jp/app/id1435783608?mt=8. To download the Android version, visit here: https://play.google.com/store/apps/details?id=jp.ne.paypay.android.app.
Features of PayPay Mobile App: PayPay mobile app offers cashless and smart payment with its several features, such as –
- Easy registration: You can pay easily with this app from just one smartphone. Registration can be completed within a minute only.
- Multiple payment methods: You may choose from several payment methods using the app, like charging from your bank account, cash charging from ATMs, and withdrawing from a credit card.
- Easy payments: you can pay anywhere, anytime with the app by scanning QR codes if the option is available.
- Money management: The app offers a usage history that you can use to manage the money spent by you to make payments.
However, although the app is very popular in Japan and very useful for making payments at stores, supermarkets, restaurants, drugstores, and home deliveries, it is not very clear how useful it is when it comes to opening a trading account on a forex broker in India. You can trade on the platforms of brokers in India that are regulated by SEBI and are in favour of the strengthening of INR as a currency so the RBI does not have to face a shortage. As for now, no such broker is accepting PayPay as a payment method. Brokers usually accept both Mastercard and Visa, along with bank wire transfer and electronic wallets. So, if you prefer e-wallets to fund your account, there are several of them you may use instead of PayPay.
E-Wallets You Can Use instead of PayPay
Since PayPay is still not an option for opening a brokerage account in India, you may consider using these popular e-wallets instead –
- PayPal: PayPal is generally known as a great payment method used for digital transactions on any platform. It is accepted by several forex brokerage firms like eToro and FxPro because of its reliability as well as familiarity with millions of internet users and high-quality services. You may visit the official website to know more about the app by clicking here: www.paypal.com/.
- Skrill: Founded in 2001, Skrill is a digital payment provider that offers a wide range of online transactions and payment options for international traders. The app is partnered with many forex brokers popular in India including IC Markets and Pepperstone. Currently, it has over 2 million users from 200 countries. Skrill allows its users to execute cross-border transactions in more than 140 currencies. Visit here to know more about Skrill: www.skrill.comm/.
- Neteller: Established in 1999, Neteller is one of the most popular electronic payment providers worldwide. The e-wallet supports more than 19 currencies. Available in 13 languages, the app offers local deposit and withdrawal options as well. Currently, Neteller has millions of clients from over 200 countries and more than $1 billion worth of transactions are executed on the app per year. Visit the official website to start using Neteller by clicking here: www.neteller.com/.
- WebMoney: WebMoney Transfer was founded in 1998. It only served Russian clients initially, but then it expanded its services universally. Today, it is one of the best global e-wallets with more than 30 million clients worldwide. The purse system of this app is one of the most notable features of WebMoney that is divided into 8 currency units. Visit here for more information about the electronic payment system: www.wmtransfer.com/.
- FasaPay: FasaPay is new compared to the other e-payment service providers as it was only founded in 2010. However, it has quickly become one of the most accessible digital payment platforms offering its services to a wide range of brokers including GOMarkets, Alpari, and more. The app offers several safety protocols including master code, pin, and API. You may start using FasaPay by clicking here: www.fasapay.com/.
The Bottom Line
To conclude, e-payment or e-wallet methods have expanded quite fast and they have become popular among forex traders. The e-wallets are convenient, lucrative, easy to use, and safe. PayPay is the latest addition to these payment systems. However, it has still not been adopted by forex brokers, and it does not look like that it would be useful to install this app if you are an Indian trader. So, for the time being, stick to the alternative options to fund your brokerage accounts.
Before you fund your account, make sure to check the payment options provided by the broker, as well as the terms and conditions to choose the most suitable e-wallet for that broker. Some forex brokers allow only one method for both deposits and withdrawals. So, you must make sure that your e-wallet is favourable for not only deposits but also withdrawals. Keeping these things in mind, you can select the best e-payment option for you.