Paypal not ready to yet bring its services to Pakistan
The American based operating Worldwide PayPal, offers online transactions. PayPal has refused to bring its services in Pakistan. Delegation of Pakistan’s Ministry of Information Technology visited US to converse and convince the International online payment company to bring its services to Pakistan.
IT experts had predicted that PayPal would start its services in Pakistan in 2019 but the meeting between officials of Finance Ministry and PayPal wound up in failure.
PayPal informed Pakistani Delegation that Pakistan is not part of their programme for at least three years. Efforts are being made to convince PayPal to start its services in Pakistan by the delegation of Information Technology Ministry of Pakistan.
Asad Umer, Finance Minister then said that the government is pledged in bringing Paypal to Pakistan. ‘’ PayPal has neither stuck at my desk not at any other government institution. In fact, we are chasing PayPal for the breakthrough’’ said Asad Umer.
Pakistanis earning a living abroad find it difficult to transfer the money from abroad back to Pakistan so the National Institutes of Technology Board is making efforts for Paypal to start its operations in Pakistan.
There hopes are still high as PayPal reviews its operations every year and possibilities of it entering Pakistan are immense.
A giant in digital money transaction PayPal is third party service provider in the International financial transactions. PayPal provides a platform for freelancers to work online and also boost the country’s economy.
PayPal provides platform for online vendors, auction sites and other commercial users as payment processor. It charges money for its services such as one click transfer and password memory.
PayPal acts as an International bank account that provides its services in 202 markets with over 286 million active accounts. Customers are able to send and receive money 25 currencies all over the World.
Reasons PayPal is not offering its services in Pakistan
- PayPal informed Pakistan’s finance officials that the giant is not yet ready introduce its business in Pakistan as the country does not have enough business opportunities which can attract the firm.
- Pakistan is on the grey list of FATF because of money laundering and on the edge of being blacklisted. The company’s policy is against money laundering, so the officials fear that the platform would eventually be used for money laundering. A single case of money laundering could cause them massive trouble.
- Pakistan’s territorial location is the second reason. PayPal has already started its services in the neighboring countries, India and Bangladesh where it is facing government restrictions. India is compelling its citizens to use Indian banks for transaction instead of PayPal. While in Bangladesh transferring money outside Bangladesh.
- PayPal will have to face tough competition and difficulties because of QR code system recently introduced and is becoming quite popular among people. The user just has to scan the QR code to make online transactions.
- People of Pakistan prefer to keep cash in hand than credit because it’s easy to pay that way. So the complex procedure of will make it difficult for PayPal to become widely used.
- The threat of security breaches is also a reason of not starting the services in Pakistan