The American company is afraid to come to Pakistan because 'there are no regulations to protect its interests.'— Shutterstock
To the disappointment of many, PayPal will not be introducing its services in Pakistan.
As of this year, PayPal — a worldwide payment system supporting online money transfers — operates in about 200 markets and has 277 million registered accounts. Additionally, it allows its customers to send, receive and hold funds in 25 currencies.
Exporters, freelancers and IT companies in Pakistan were eager for PayPal to launch in the country for ease of payments.
But as people express their frustration over the online payment giant's refusal to operate in Pakistan, the question to ask is: how did we get to this stage?
Why aren't major international payment gateways — such as PayPal, Google Pay or Stripe — operating in Pakistan, even though they operate in similar countries?
And more importantly, why aren't companies from the fourth largest freelancing country able to send invoices to international customers which they click to pay?
The short answer is that for PayPal, operating in Pakistan isn’t a sound business decision at this point.
Here’s why:
Govt attitude towards digital economy
Digital payments are an important part of the digitisation of our country. And while there has been some effort from individuals, the field lacks a robust effort by the government. One of the major challenges in Pakistan today is the mindset surrounding the digital economy and the low priority given to it by our leadership; sadly, the digital ecosystem has always been and continues to be a sideshow.
Pakistan needs to develop an overall ecosystem to motivate a company like PayPal to enter the market.
For anyone running an e-commerce company and wanting to make a payment to a vendor in, say, China, State Bank allows 35% repatriation of funds for exporters but the process requires cumbersome documentation that makes it difficult to send money abroad.