The government of Pakistan has been trying for years to bring the global online banking platform i.e., PayPal to the country. But PayPal has repeatedly shot down these requests. Nevertheless, the Government never once backed out and kept on trying to bring the global giant to Pakistan. Next week too, the government is to invite PayPal to Pakistan. What are the chances?
The electronic payment system PayPal is based in the US. PayPal plays the role of a third party between two parties for their financial payments. Once the customer has signed up, he then links his bank account, credit card, or debit card with PayPal. Upon completion of the procedure, the customer is allowed to send or receive money from/to bank accounts or cards. In the online fund transferring market, PayPal holds strong grounds. Over the last 20 years, it has had around 300M active users and average quarterly growth of 3.5%.
PayPal In Pakistan
Pakistan is having a hard time convincing PayPal to the country. Several attempts have been made in 2015 and 2019 but no notable progress has been made. Although, there are many online payment methods available to the people of Pakistan but PayPal remains the most trusted choice among freelancers. Over the past three years, Pakistan has seen significant growth as a freelancing exporter. As there is no trusted electronic payment provider, freelancers are faced with several problems. Consequently, they resort to illegal or informal payment service providers creating insurmountable risks for themselves and the country. PayPal being a credible global online payment is also the solution to all the electronic payment-related issues.
With high demands from Pakistan, PayPal has consistently been refusing to set up its operations in the country. PayPal’s refusal is, however, not without reasons. There have been many concerns that the platform is facing. PayPal voiced concerns regarding the country’s FATF status, money laundering, and SBP strict restrictions. There are the main reasons why PayPal is reluctant to come to Pakistan.
PayPal expected visit
The news came with the PM of Pakistan’s next week plans. As the PM is going to visit the World Economic Forum annual meeting in Davos, Switzerland. There he is expected to meet important people from commerce and energy leaders, the global leaders and not to mention representatives from PayPal will also be there. The PM will invite the company to launch its operations in Pakistan.
In a meeting with the Ministries of Finance and the Ministry of Information Technology and Telecommunication (MoITT), PM Shehbaz Sharif asked for a briefing concerning the issue that is not letting the company set up its services in Pakistan.
Apparently, PayPal has already voiced its concerns. Unless these issues are resolved, chances are bleak that the company would set up its services in the country. But you never know, despite years of resistance, PayPal might take its chances with Pakistan.