PayPal is not offering its services in Pakistan because Pakistan is a developing country so the use of technology in Pakistan is not very popular. Many people are not using technology to their business work easily. Most of the people are using old and traditional methods to do their business as many people are using old methods to do transactions. According to the survey there are less than 25 percent people are using banks to transact money from one place to another. The other people of Pakistan do not have access to bank system due to some reasons maybe they are not educated or they don’t know about the banking system in Pakistan. They are using old methods for the transaction. And from these 25 percent people only less than 15 percent people are using online banking for their online transaction.
But the pandemic of Covid-19 has increased the use of online banking in Pakistan. Now people are choosing online banking for money transaction. Pakistan is ranking at fourth position in the world of freelancing. Now Pakistan is doing great in the world of freelancing. So this is increasing the need of online transaction in Pakistan. There are lot of freelancers and entrepreneur who are willing to get access to the modern online banking system like PayPal. But PayPal is not offering its services in Pakistan due to many reasons.
PayPal is an American company which is widely being used to transact money internationally. It is the most popular online banking system which is being adopted by the people of many countries. PayPal is operating in about 200 markets and it has approximately 280 million registered accounts. It offers its customers to send and receive money international and it can hold around 25 currencies.
As we know Pakistan is ranking at fourth position in the world of freelancing. Pakistani freelancing community has around 1 million freelancers. There are also around 5 million enterprises which are working in Pakistan and they have around 40 percent share in the GDP of Pakistan. The use of 4G coverage has increased the access to the world of freelancing. There are many young people who are choosing freelancing as their career. They all are in need of online banking system like PayPal. But they don’t have access to this secure and fast payment system because PayPal is not offering its services in Pakistan. PayPal in working in many small and under developed countries like Nigeria and Kenya but it is surprised that PayPal is not ready to come and offer its services in Pakistan.
Why PayPal is not offering its services in Pakistan
There are many reasons that why PayPal is not ready to offer its services in Pakistan. The delegations from the Government Of Pakistan met with the authorities of PayPal and discussed the issue of online transaction in Pakistan. They offered them to start their business in Pakistan also but PayPal refused to do so.
Firstly the senator Mian Muhammad Atiq Sheikh has remarked that “PayPal is afraid to come to the Pakistan until there are rules and laws to protect the interests of the company.
Secondly the main reason is that the new international company who is willing to start its business in Pakistan has to pay 200 million dollars as license fee which is a massive amount especially for the companies like PayPal that charges about 2 to 3 percent per transaction. So this may be the reason behind why PayPal is not offering its services in Pakistan.
Thirdly as PayPal has recently started its services in Bangladesh and India and it has to face many restriction from the state bank to hold any amount in PayPal account. So PayPal is afraid of these restrictions to start its business in Asian countries especially in Pakistan.
There may be many other reason that why PayPal is not offering its services in Pakistan. As we have discussed that the use of online transaction is Pakistan is very low. People are using many old methods like paper and cheque for the banking. So the trend of traditional banking is maybe a reason behind the PayPal refuses.
The Government of Pakistan should take steps to improve the online banking in Pakistan. They should also solve these problem so PayPal and other companies can start their business in Pakistan without any fear. They should increase the license fee to start business in Pakistan. Pakistan should eliminate money laundering and cybercrimes to make Pakistan’s image clear in the eyes of the whole world.