“PayPal is not Coming Soon”. Why?

PIDE Knowledge Brief No. 29:2021
Author: Abdul Jalil
Publication Year : 2021

PayPal is a US-based electronic payment system that acts as a third party for financial payments between two parties. After signing up for the PayPal platform, the customer is supposed to link PayPal with their debit card, credit card or bank account. After completing the procedure, the customer may receive and send money to/from their cards or bank accounts. PayPal has a strong position in the online fund transferring market. It has around 300 million active users and has an average of 3.5 per cent quarterly growth over the last 20 years (see Figure 1). However, unfortunately, it is not working/coming in Pakistan despite a lot of demand and efforts. There are several buzzwords in the market about the absence of PayPal. Money laundering, FATF and exchange control regime are the most important reasons have told in this regard. However, there is not a single comprehensive study is available on this issue. This small brief is an attempt in this way.