Reasons why Paypal is not authorized in Pakistan
PayPal is an e-commerce business allowing payments and money transfers to be made through the Internet. PayPal serves as an electronic alternative to traditional paper methods such as checks and money orders. But a strange thing about the world’s most trusted leader in online payment, PAYPAL which operates nearly in all countries even in many small economies till now doesn’t operate in Pakistan.
The reasons for which PAYPAL is inactive in Pakistan are
Regulations of State Bank
Certain rules and regulations laid by State Bank are unimaginable which made it tough for PayPal to land in Pakistan even though it tried to sort out things with Ministry of IT, Pakistan but things didn’t favored PayPal. The bureaucracy put little commitment to get things done right.
High Internet Fraud Ratio
Pakistan stands high on the Internet High Fraud Ratio that is main reason for PayPal to withdraw their services in spite of being having a registered domain paypal.pk specifically for Pakistan.
Local Pakistani laws
The indifferences between the PayPal organizations policies and some of the laws of Pakistani government don’t meet end to end. Neither of them agrees to take a step down and merge down as one to continue.
High raised rumor
A very popular rumor which pretends people of Pakistan to force it’s government to bend down or which can shake the PayPal office so that it can start it’s operations in the country is that people here believe that PayPal is a registered company and Israel and Pakistan cannot agree upon the Identity of Israel but in reality PayPal is a US based firm currently owned by eBay
Credit card fraud ratio/Suspicious credit cards
As the PayPal suggests, demands you to collaborate your credit card details with the PayPal account for smooth operations, the credit card fraud ratio is a bit high in the country.
Visa Cards
Until now Visa is not fully operational in Pakistan. The Visa Inc. has launched Visa Debit Card through UBL Bank as late as in November 2008, which is the first prepaid visa debit card in Pakistan.
Terrorism related Issues
PayPal is a complex system of eTransactions and companies like PayPal needs a very stable environment at least if not stable then just “acceptable” environment which one does not see unfortunately in Pakistan now.
Hacking and cracking
Ethical hacking and cracking practices are high in Pakistan and when the PayPal registered it’s domain for Pakistan i.e. in 2006 the practice was at its best in Asian countries including Pakistan. The PayPal cannot keep on repaying money to all those who claim there passwords are cracked or their accounts are hacked. If a PayPal account is ever operated from Pakistan’s IPs PayPal immediately freezes such an account.
Addressing issues
For withdrawals PayPal offers two possibilities cheque facility and bank transfer. For the check facility the PayPal required an address not more than 35 characters which is a problem with Pakistan as people’s name itself sometimes are more than 35 characters.
I tried to contact Paypal again and this was their reply
Dear Usman Shahzada,
Thank you for contacting PayPal regarding opening a PayPal account.
Mr. Shahzada, we sincerely appreciate your interest in becoming a PayPal
member. Unfortunately, we are not yet providing services for Pakistan.
Establishing our service in each new country or region involves complex
changes due to different regulations. We hope to be expanding our
availability; however, due to the complexities of global expansion, we
cannot give a timeframe for this. We are working hard and look forward to
expanding our services to additional countries and regions in the future.
Unfortunately, at this time you will not be able to use the PayPal system
for your business purposes. We at PayPal wish you good fortune in your
business endeavours and hope that in the future we may be able to work
together successfully. I would also like to take this opportunity to thank
you for your co-operation with our ongoing investigation and regret that we
were not able to come to a workable solution.
Visit https://www.paypal.com// and click the ‘Worldwide’ link in the footer
of the page for more information on availability.
I hope that I have been able to assist you and the information I have
provided to you has been of use
It is my pleasure to assist you. Thank you for choosing PayPal.
Yours sincerely,
Sian
PayPal
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With all due respect this post is nothing but crap. Though I agree that the bureaucracy is a very big problem but all other points are vague. Credit frauds are there in all countries but the point that you forget is that all transactions are insured so the bank has nothing to loose. There is law enforcement and there is a legal system but the problem lies to the fact that if Paypal or like companies start working then the law enforcement and Govt. will have to work. So the policy that just ban it rather control it and just sit back and draw salaries out. This is found everywhere in the Govt. system. The problem with Govt. is that they want to work.
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hey,
very nice article, i have swedbank account in sweden, and i am paypal subscriber but i do operate my paypal account from pakistan for more than last 3 years, and they never did anything bad with me or my account.
There are many genuine reasons written in this article, and i agree to all of them, pakistani government is totally fazool if you talk about IT regulations. Remember what was happened to microsoft ?
This country is run by paindos, how can you expect that companies like Microsoft or Paypal can put step in this backward country ?
Being a programmer, i know the real talent of a pakistani programmer, but just because we can’t get money online, we have to work 12 hour or more job for just 30 to 40 k / month.
so sad
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I use 2checkout in my website for credit card and also paypal payments. I sell Egyptian gifts which is very popular in most European countries and USA. you can check my website at
Egypt gift shop
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Moneybookers is far better than Paypal.Once your account is verified they give u a Maximum withdrawl limit of 23500 Euro.
It also has a big advantage which paypal doesnt offer & i.e No chargebacks.I personally feel that Paypal is the worst Payment method at internet.Anybody can stand up from the Crowd & file a Dispute.Paypal at once freezes the amount unless the issue is resolved.I advice all Pakistanis working at net to open a MB Account for peace of Mine.Heres the link to open the Account.
https://www.moneybookers.com/app/?rid=4689236
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It is so sad that still they dont offer their service in Pakistan despite the fact that our internet economy is boosting day by day. Well, we should accept this that our laws are the main hurdle otherwise no multi-national ever desires not to expand their outreach.
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Well, it must be very frustrating. Things have come along ways in the last couple of decades. I still remember … well actually I was in Northern Pakistan for a while and I could not reach my family, the postcard I had sent from Sust took 3 weeks to arrive, I stayed in Hunza much longer than I expected, and my family got really worried … the point being, there was no Internet as we know it there was no email. Sending money internationally and even international communications was a whole different ball game, and this was not too long ago!
So from that viewpoint, one can say that at least things have progressed a lot from how they were before. The fact that we have the Internet at all has opened many possibilities. Now lets hope that technology (and the other factors which influence the points you list above, such as ethics and politics) progress and improve so that people can be benefited by new opportunities all over the world, and without these limitations.
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I contacted Paypal regarding this matter and here is what i got the reply
Thank you for contacting PayPal. My name is Catherine, and I am happy to
assist you today.
We sincerely appreciate your interest in becoming a PayPal member.
Unfortunately, we are not yet providing services for the country or
region in question. Establishing our service in each new country or
region involves complex changes due to different regulations. We are
always looking to expand our availability; however, due to the
complexities of global expansion, we cannot provide a specific time
frame. We are working hard and look forward to expanding our services to
additional countries and regions in the future
Go to the PayPal website and click the “Worldwide” link at the bottom of
the page and click “190 countries” for more information on the countries
and regions that PayPal supports.
Got more questions? You’ll find answers at our improved Help Center.
Click “Help” in the top right corner of any PayPal page to get started!
Sincerely,
Catherine
PayPal Resolution Services
PayPal, an eBay Company
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I don’t agree with some of your reasons mentioned specially the last one, Also credit card fraud ratio is much higher in the African countries where Paypal Supports, As far as Law n Order stability is concern, I guess Ethopia and Somalia are not much stable than Pakistan, and Paypal Supports these two countries as well. Your first point is quite valid which needs to be solved by Government of Pakistan.
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hi, nice post man, really i was amazed about why paypal deny it’s service from a lot of countries like pakistan and egypt which i live, but you also posted alternatives of it like money bookers. thanks.
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