Today I tried to make payment to an Indian Merchant through PayPal, but PayPal showed the following message
We notice that you are attempting to pay an Indian resident user. The payment you initiated has been blocked. PayPal only facilitates international payments and cannot be used for domestic payments within India. We suggest you find alternative methods to complete the payment. If you believe that the person you attempted to pay is not based in India, please contact PayPal customer support.
This will make things worst because many Indian merchants are just depending on the PayPal only for the online payments.