The Inside Story- PayPal in Pakistan
The launch of PayPal in Pakistan is in debate and peoples are discussing what will be the next move by them.
So Here is the real Story shared by One of my friend, Iqra Hameed (You can watch her Interview HERE), visited the PayPal headquarters and met with the founders and company’s top management to know their opinion. Let me describe what PayPal is and what they do.?
PayPal is an American company operating a worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like cheques and money orders.
Iqra Hameed had a long conversation with the senior management; meeting Vice President Stefana Bjorn Rettig for Global Content and Technology, Stefana Hunyady Senior Director, Regional Engagement & Planning, Lucie Hyde – Senior Director for Content, and Daniela Jorge – Vice President for Global Design.
Having a detailed conversation, it came to the conclusion that PayPal is not yet ready to be launched in Pakistan. As they are having several issues and as soon they are capable to overcome those issues they will start their business.
- Government Regulations: As PayPal is following the international standards for running their business but Pakistan’s local regulatory are not suitable for PayPal to run their business as required. Pakistan Monetary Regulation Authority is developing their system to meet the criteria of international standards and it will take plenty of time tto welcome PayPal.
- Business Growth: For every business the important aspect is to expand their operations and Pakistan is not providing the right market and opportunity for PayPal to expand their services. As PayPal deals with the money transactions and still in Pakistan there are majority of people who uses traditional way of doing business by paying cash physically. PayPal needs majority of its customers to have bank accounts and carry digital transactions.
- High Level of Taxation and Cost: Pakistan’s tax policy is changing from time to time. High level of taxation influences the market and can shift the customer attention to other alternatives. As western countries provide a safe passage to carry out their business and operations. PayPal management is seriously concerned with taxation policy and regulations which may cost them a lot.
- Communication Factor: Language is one of the essential part in business to communicate with people. Likewise, PayPal launch in India has made them aware of the language factor, PayPal is an international company and majority of them uses English as a mode of communication. Running business in Pakistan will lead them to adopt the local language to interact with the people
- Market Dynamics: PayPal needs a smooth and rapidly increasing tech market for its growth. Pakistan’s people in majority are unaware; how to carry out the digital marketing. As India, having a diverse technological market and people are attracted towards it as compared to Pakistan but still, PayPal is not enough happy there, that makes a clear picture of the PayPal when they are coming.
Let’s sum up the discussion, it is the need of hour to seriously look and government officials including our public community should create a prosperous environment to welcome PayPal in Pakistan. Globalization plays an important role and businesses are rapidly transforming, influencing the market and consumer choices and PayPal is one of the important organization that plays a key role in this. Now, let’s see who is going to step first.