Paypal is the global standard for payment transfers and for carrying online transactions. Its swift mode of payment allows people to send and receive payments instantly.
Besides, majority of E-Commerce web sites rely on Paypal for charging transaction amounts from the customers.
The common problem for Pakistan’s 25 million plus internet users is that Paypal service is not available to them. It is either due to policies of Paypal or due to the hindrances it faces from local Banks and Financial Governance Institutions.
Many experts hint that Paypal has not yet started its operations in Pakistan due to technical as well as law and order concerns. Factors such as money laundering, funding of terrorists, weak banking infrastructure in Pakistan and lack of cooperation on part of State Bank and local authorities may be hindering Paypal to land in Pakistan.
Who can play a role for removing those hindrances?
The government departments such Pakistan Software Export Board (PSEB), the industry support organizations such as Pakistan Software House Association (PASHA) and the infrastructure development departments such as Pakistan Telecommunication Authority (PTA) can play anticipative role for removing these hindrances that confine PayPal from coming into Pakistan.
Also it is the responsibility of government to improve law and order situation in the country and make strict laws to curtail cyber crimes. Passing of anti-laundering bill is another need that government should resolve to pave a way for PayPal in Pakistan
Paypal and Online Eco System Based on ‘Cash-on-Delivery’
Today most Ecommerce vendors in Pakistan are relying on Cash-on-Delivery system in which payments are received at the door step of the consumer at the time of delivery of goods.
For businesses it means putting extra resources for payment collection which means an additional cost of doing the business. It also involves risk as many scams occur while delivering goods to far flung areas.
Virtual Stores Can Help Businesses Reduce Costs
Moreover, selling goods offline involves more cost as the vendors have to open physical stores at different locations. Online stores can help them set up virtual stores through which they can sell anywhere in Pakistan.
If awareness is created to use online stores it can boost business activity throughout the country. Coming of PayPal would allow the local stores to grow their businesses which would consequently result in job creation. It will also encourage entrepreneurs to establish new internet-based businesses.
PayPal and Exports
Pakistan is lagging behind other developing countries such as India having 120 million internet users. Pakistani IT companies are not able to receive and send payments easily and find it difficult to sell their software and services online.
Here are given some statistics that will reveal the potential of Paypal in the modern global economy:
- Total volume of transactions carried through PayPal in year 2011 was $118 Billion.
- Annual online spending by US was 202 billion by the end of year 2011. It will increase by 226 in 2012 and 327 in 2016.
The IT professionals and Freelancers in Pakistan face numerous problems when it comes to receiving payments from clients. Similarly it is difficult for the software companies to sell their products internationally.
If PayPal starts to operate in Pakistan it will reduce transaction cost and hassles. Currently the local businessman relies on less reliable modes of payments which are not only slow but are costly too. These are Wire transfer, Western Union, Money Bookers, Payoneer.
Nauman Lodhi, author of this post, is an IT and Digital Media Marketing Professional. He blogs at: http://www.backspacetab.com
I think PP still far away to enter in Pakistan market.
Absolutely right,,,No need of these posts.Final words “they are not going to support Pakistan”..!!
Adnan I appreciate your Emotions. But the businesses around the world do not operate to support any country or religion. Their primary objective is to achieve profitibality. If in Pakistan we provide a suitable environment to foreigners they can think of investing here. And raising voice through the digital media can have an impact.
I bet lots of people don’t know that PayPal is in Somalia, so PK is worst than Somalia?….our State Bank is not giving them the permission
If paypal comes in Pakistan it will be less beneficial and will increase online scam.
Is their any alternate of PayPal in Pakistan.
Go for Google Checkout/Wallet
very good step. prepaid connections should be banned immediately for better law and order situation.
What does that have to do with Paypal?
There are many ways to get verified Paypal account and use in Pakistan. There are some tips to use it safely.
If someone want help he can contact me at [email protected]
and give reference of propakistani
But I heard that Paypal was having problems in India as well. Can you guys please dig into that and see what the situation is over there?
As an alternate solution, I hope our local solutions like UBL and easypaisa can step up and deliver online payments for merchants and people. That would be a BIG boost to e-commerce in Pakistan.
I am very disappointed with easypaisa because they do not have an online website integration system.
paypal should come to pakistan because pakistan is growing in internet market business, and internet customers are also increasing day by day so it will be a good step to come to pakistan…
I would agree with the above statement that paypal and like this other opportunities should enter Pakistani market and if anyone want to verify it they can go and check it on dekho.com.pk site they have a contact person as well
It’s not the matter of “Should or Should not” the problem is, we being Pakistani(even in small %) are involved in fraud at every level so why they bother to even think of enter in such country.
+1
Well i think its not about fraud. They are the best and they know quite well how to develop parameters to avoid fraud. Only thing is total market. We are country of nearly 180 million population but internet users are only 20 million. Out of this 20 million, users looking for online transactions are even less than 1 million.
I think we need to think differently and to present paypal with a reason to invest in Pakistan.
wow it will be nice to use….
To propakistani.
you can increase ur adsense earning if you block pakistani site like olx and gmail
How
Can Kenya which is not even a
Third world
Country can have PayPal whereas Pakistan can’t. The logic that Pakistan doesn’t have the banking infrastructure is not
Correct . I am
Pretty sure
We are more
Advanced
Than Kenya.
Paypal launching in bangladesh in september… What a shame on pakistan :x
Guys ! Face the reality.We have destroy our image in world by our own, i know it really hurts but it’s the reality.if we Pakistanis imagine ourselves superior and we just say “hum hain Pakistani hum to jeetain gay han jeetain gay ” then i must say we are just living in cloud-cuckoo land.
Not just IT or telecom sector but we have lose our morals . Muzafargarh naked women incident ,mukhtiara mai case, karachi graveyard incident ,bakhar deadbodies case are some of cases that cant even be describe and shows our demolarization.and international media shows it again and again to make our spoil our image.but it’s not their fault we gave them chance.
We were champs of cricket but match fix scandel have destroy out reputation srilankan team attack have ruin our grounds.
We won Oscar but after making ourselve demoralize in front of world and show world how we Pakistani treat women .Bravo ! Miss Sharmeen.
And, where it concern IT then lets see some facts, in Afghanistan 3G is working but,not in Pakistan .Kenya have paypal but not in Pakistan .Even Bangladesh will have 3G and Paypal in next few months but not in Pakistan .
I know these realities are biter enough but we have to exmine ourselves and being muslims and only atomic power in muslim world we should make our selves role model for other muslim countries.and pls guys giveup blaming govrment .we all are responsible and we ask have to correct ourselves.
Quite a sensational writing, but most of it was not relevant to the topic. Bangladesh also dont have 3G and Paypal as you said but ofcourse its not worse than afghanistan and sumalia, how how you suggest that pakistan actually is because these services are not offered here.
Secondly, for everyones information 3G actually is in Pakistan and offered by PTCL as a separate services to their specific cell phones. You can have any other connection on these phones like ufone, zong etc. And 3G is not a guage of a country’s performance in IT. Its a political issue due to involvement of heavy license fee and not an economic or technological issue.
Thirdly, this article is ill written by an IT expert who has (i) hot defined how paypal works for our understanding and (ii) he doesnt know anything about our banking system and how it is regulated. Pakistan’s banking system is comparable to any other developed part of the world through robust supervision by State Bank of Pakistan. I failed to ubderstand that how the writer knows that SBP or commercial banks do not want paypal to come to Pakistan.
I have a lot more to say about this stupid piece of writing by the guest author and even more stupid comments by our self proclaimed over confident genious readers.
Paypal is biased, they do not operate in muslim countries except some rich ones because of their own interest. Banking system, fraud, money laundering etc are just some lame excuse.
We’re far more advanced and better than sumalia and kenya, but we’re an Islamic Republic and thats it. Same is the case with iran.
Sorry to say but is not their fault if your govts ask them for 10% share to their ministers and MR 10%
I am an online affiliate marketer and all i have to say is that due to paypal we loose business on daily basis , seriously we do have some really talented guys over here who can do well but they can`t why ? due to payment processing problems personally i face many difficulties just because of unavailability of paypal in Pakistan , we are loosing thousands of dollars just because we don’t have another payment option except payoneer and moneybookers which are not use that much in online community … personally talking just because of this issue i have to receive payments in my uk based bank account and then from there i transfer money into Pakistani banks and no need to mention due to MR 10 percent running the govt i do have to pay almost 15% of my income in terms of payment processing fee … neither pakistani banks are friendly with IMers in Pakistan , want to run a successful IM business ? get hell out of Pakistan that’s the only solution
Dear KJ,
You post is absolutely true and, like so many affected people, I endorse it completely except the last sentence of your writing. We should not be discouraged to this extent and support the efforts of those who are empowered to get the things to a better state.
Let us hope for the best and pray for an overall improvement of law and order situation and other factors related to online business.
Regards,
Is anybody know , how to make valid PayPal account and recharge in Pakistan ????
Paypal can work in Pakistan if SBP allows them to start business here. don’t blame paypal for not offering their service here.
2nd Govt. does not want paypal to come pakistan.
3rd if paypal starts here , money laundering will be very very easy.
Goo news is that paypal is working hard to get into Pakistan. A confirm news from paypal insider.
Hope is still alive.