PayPal in Pakistan
PayPal declines to come to the fourth largest freelance market
Freelancing is witnessing exponential growth in recent years. Thanks to 3G, 4G, and 5G technology and the advent of (Information and Communication Technology) ICT. Even developing countries of Asia and Africa have found ways to grow their business online. In the second quarter of 2019, the report ranked Pakistan at the fourth place in terms of year on year growth without PayPal in Pakistan.
The report took data from a sample of more than 300,000 freelancers in Payoneer’s network. The reason for much of the growth in Asia is due to the performance of Pakistan. It has grown by 47 percent in the second quarter of 2019. A report includes the country among the capitals of freelancing.
Other top countries are the United States with 78 percent year on year growth, the United Kingdom with 59 percent, and Brazil with 48 percent growth in the same period. It makes one surprising that PayPal does not offer its services in Pakistan.
Government Efforts to Bring PayPal in Pakistan
PayPal is the US-based company, and it acts as an international bank account for buyers and sellers of products and services. It offers its services in over 200 countries that make it a truly international company. In 2019, Pakistani newspapers report that the government made serious efforts to bring PayPal in Pakistan by convincing the company to start its operations in Pakistan.
According to reports, the Ministry of Information Technology sent a delegation to the United States for this purpose. It is surprising to know the delegation came with nothing in hand. The company said Pakistan is nowhere in their three years plans.
PayPal does not see any strong business opportunities in Pakistan, though; the country ranks fourth in freelancing. In a Forbes report, Moldovan says that the Pakistani younger generation is behind this increase in the freelancing market. That has made it among the top ten fastest-growing freelancer markets. But it points to at small and less developed freelance industry in the country. It seems a neutral opinion for not having services of PayPal in Pakistan.
We must work together to ensure the equitable distribution of wealth, opportunity, and power in our society.
On the other hand, Pakistan has to realize the reason behind the refusal of the company. The company is operating in over 200 countries worldwide. Experts say that the company is unprepared to operate in Pakistan. Lack of POS and credit card penetration in the country is also one of the most important reasons.
Money laundering is also a serious issue in Pakistan, where the current government is pursuing cases of money laundering. Pay pal has zero-tolerance towards money laundering. The government has to change this situation before inviting the company to the country.
PayPal offers its services to the Least Developed Countries too, why not in Pakistan
The above case puts the responsibility on the Pakistani government to correct things. Let’s take the company perspective as well that is offering its services to more than 200 countries of the world. These countries include many African nations that are less developed than Pakistan. Somalis, Angola, Burundi, and Comoros have PayPal services.
The question arises why it does not offer its services in Pakistan. Pakistan is an emerging and fast-growing freelance market in the world that has more than 200,000 freelancers. The country is the home to more than 7000 small and medium enterprises (SMEs) that are registered.
It is very informative and worth to understand the case of PayPal in Pakistan. Pakistan is a developing country with a large young population. The country has witnessed advancements in telecommunication technology and internet services. Its freelance market is flourishing, and the Pakistani government is welcoming PayPal. It seems surprising, but there are reservations from the company.
The Pakistani government has to bring policy change so that the company can enter the country. It is an interesting story of a company that shows stubbornness even after serious government efforts to welcome it.