What is PayPal?
In today’s world of fast-paced technology and changing trends, PayPal is a name unknown to none. Since its launch in 1998, PayPal has been one of the top online methods of making payments. Initially owned by a subsidiary of eBay in 2002 and then spinning off from it into an independent setup, PayPal currently serves the individuals from over 190 countries. Users can send and receive money anywhere in the world in more than 25 currencies through PayPal’s online payment system. The company’s corporate headquarters are located in San Jose, California while the operation’s centre is in Omaha, Nebraska.
Why is PayPal important for Pakistani freelancers?
The increasing trend of freelancing and home based jobs has engraved its roots around the globe including Pakistan. People especially the students prefer home based freelance jobs as to generate additional income. This calls for a payment system that is 100% genuine and safe for making every kind of transaction and so for this, PayPal is taken under consideration. As the clientage is local as well as international, the payment system demands maximum security, safety and fast transfer. Especially in Pakistan where the internet scamming and fraud is rife, a genuine source is required that handles all the money matters with utmost security. PayPal is not just highly secure and fast; it also provides you with the flexibility of setting up multiple bank accounts, credit cards, and debits cards to fund your account. In this way, you won’t have to depend on just one source.
A huge number of freelancing websites use PayPal as their primary payment method. Platforms like freelancer, fiverr, udemy, etc require users to sign up for a PayPal account to have their payments unharmed reach up to them. This further highlights the importance of PayPal as the sole reliable medium for transfer of money all over the world.
Why is PayPal banned in Pakistan?
Now that’s the central part. Having the world’s top rated payment scheme banned in your country is not only alarming, but it also puts a question mark on the integrity of the state. Although there are a number of third-party solutions available that claim to provide access to PayPal, but that is all fraud. Here’s a list of all the possible reasons behind the unavailability of PayPal in Pakistan:
Policies of State Bank:
State Bank of Pakistan has drawn particular incomprehensible rules and regulations due to which it’s almost impossible for PayPal to land in Pakistan. Despite the fact that it attempted to sort things out with the IT Minister, things still didn’t support PayPal.
The lack of interest between local Pakistani government laws and PayPal policies makes it difficult for both the parties to make ends meet. Moreover, neither of them consents to make a stride down and converge down as one to proceed.
Being an intricate system of online payments, companies like PayPal require a highly stable environment to function if not stable then at least a reasonable environment which unluckily is not available in Pakistan.
The high rate of internet fraud:
The internet fraud ratio stands high in Pakistan, being the foremost reason for PayPal to pull back their services from the country despite having a registered domain specifically for Pakistan.
Credit card issues:
As per the PayPal policy that demands you to attach your credit card details with the PayPal account for an even running of operations, the credit card fraud ratio is quite high in our country.
Unethical hacking practices in Pakistan aren’t a new thing. When PayPal registered its domain for Pakistan in 2006, these practices were at their best due to which PayPal had to repay money to all those who reported hacking and cracking issues with their accounts and passwords respectively. This led to a permanent ban on PayPal’s services in Pakistan. If anyone ever tries to operate a PayPal account from a Pakistan IP, his account is immediately confiscated by their servers.
Is PayPal coming to Pakistan?
For few past years, freelancers, entrepreneurs, and online traders have been looking forward to the day when PayPal finally decides to open its doors in Pakistan. There have been countless rumours about the service finally launching here but all in vain. Last year, the IT Minister Anusha Rehman had stated that all the measures had been taken and arrangements were being made to launch the US-based PayPal and China-based Amazon in Pakistan. A year has passed and we see zero results. Pakistan is as of now in Financial Action Task Force’s (FATF) white rundown, which fundamentally implies we have universally acknowledged hostile to tax evasion and counter terrorist financing models.
Keeping in view the current scenario, it wouldn’t be wrong to say that the chances of PayPal starting its operations here anytime sooner aren’t very promising. It’s about time that our government officials take some serious steps towards bringing the company to Pakistan rather than just making empty promises for press coverage.