By Anees
The information technology boom has allowed micro and small businesses to open up across the country, and they are all looking for safe and secure methods for transaction of money. The need for security is greater for freelancers who earn online by mostly providing services to people living abroad. The services provided by small business and freelancers might be different but their choice for money transfer is often PayPal as it is one of the most common platforms for online payment.
A step-by-step guide has been compiled below if you want to set up an account on PayPal in Pakistan.
What Is PayPal?
PayPal is an American financial technology company that is well-known for running online payment systems all over the world. In a nutshell, PayPal serves as an alternative to traditional financial transaction methods.
PayPal processes payments for its customers and charges a fee for each transaction – this is how its business model works.
Is PayPal Available in Pakistan?
All freelancers and small business owners in Pakistan have the same question: does PayPal work in Pakistan?
Unfortunately, PayPal does not currently operate in the Country. However, there are a few options for opening a Paypal account in Pakistan as described below.
Step-by-Step Guide to Sign Up on PayPal
Setting up a an account on PayPal is simple, and you can follow the following steps to create your personal or business account:
- Go to PayPal’s official website and click on the “Sign Up” button.
- Paypal will inquire if you want to set up a personal or a business account.
- A personal account is better for individuals who don’t have a functioning business. On the other hand, if you do have a functioning business, you should open a business account.
- One you have selected the account type, PayPal will ask for your credentials. For this, you must have a valid email address as this will be used to login and operate the account.
- Create a unique password to keep your account details secure.
- PayPal will ask for your residential and mailing address. Make sure the information you provide is correct as PayPal will use it for correspondence with you.
- Once the form is complete, ensure the email is correct and confirm it.
- Once the account is verified, your account will be ready.
Opening a Personal PayPal Account in Pakistan
Since PayPal does not operate in Pakistan, you will not see Pakistan in “Country of Residence” during the sign-up process. A legal way to get around this is using the address of a friend or family member who lives in a country where PayPal operates. This method will still allow you to operate the account from Pakistan.
Opening a Business PayPal Account in Pakistan
To open a business account on PayPal, you need a company registered under your name in the United States (US). If you don’t have one, you can use the credentials of a family member or a friend living abroad.
The following information is needed to for a business account:
- A US registered company
- Tax ID/EIN number
- Business bank account in the US for PayPal account verification
- US address of your company
- US phone number (preferably on roaming)
Why Use PayPal
Given below are some of the reasons why PayPal is one of the most widely used online payment methods:
- Large Network
PayPal is a global network that is available in all major countries. It is particularly helpful if you are a freelancer or a business owner looking to expand your business beyond borders. You will be able to collect money from international clients quickly and easily using this payment method.
- Safe and Secure
PayPal offers a safe platform for conducting monetary transactions. The company secures all transaction details, including your bank information.
- Flexible
PayPal is extremely versatile, allowing you to use multiple bank accounts, debit cards, and credit cards under a single account. Furthermore, the service is available 24 hours a day, seven days a week, making it a very convenient payment method.
- Cost
PayPal is very inexpensive – there are no annual membership fees, service fees, or processing fees to use this service. This is a great alternative to credit and debit cards, which have annual service fees and regular monthly cutouts.
Things to Look Out For
Since PayPal is widely renowned, there are some strict protocols you need to follow to ensure that you don’t run into any problems. These include the following:
- Never Provide Fake Information
When creating your account, make sure you don’t enter any false information (residence address, phone number, or business details). If PayPal detects any illegal activity on your account, they will immediately block it, according to company policy.
- Confirm Your Information
Before making any transactions, double-check your information. Most importantly, double-check that you have entered the correct bank information and residential address.
- Fraudulent Money Exchange
There are many scammers out there who will go to any length to defraud you of your hard-earned money. They can pose as a PayPal exchanger in Pakistan. Do not fall victim to such people, and always use a verified method to obtain a PayPal account in Pakistan.
Withdrawing Money From PayPal
Withdrawing money from PayPal can seem confusing but here is how you can do so:
- Keep in mind that you can only withdraw money when you reach the minimum transaction amount.
- Go to ‘Wallet’.
- Click on ‘Transfer money’.
- Click ‘Withdraw from PayPal to bank account’.
- Select the bank account you want to transfer the money to.
- PayPal will ask the amount you want to transfer.
- Review your request and confirm.
Alternative to PayPal in Pakistan
In case you do not have a friend or family member abroad, you can use an alternative to PayPal. Payoneer is a good option in this case that provides monetary transaction services in Pakistan.
How to Create a Payoneer Account
If you want to accept payments from foreign clients in Pakistan, you must create a Payoneer account. Payoneer is used in over 200 countries and in more than 150 currencies, making it widely accessible. Here are some steps to creating a Payoneer account.
- Go to the Payoneer website.
- You must have an email account to sign up for a Payoneer account.
- Then, click the “Sign Up Now to Create a Payoneer Account” button.
- Now, fill in the relevant information.
- Fill in your email address and choose a unique password for your Payoneer account.
- After that, include contact information such as your phone number, city and zip code.
- Your account will be created, and you will only need to verify your email address.
How to Link Payoneer Account with PayPal Account
Here are some important steps you should take to link your PayPal account to your Payoneer account:
- After you’ve signed up for a PayPal account, go to your Account Summary page and select the “Link a bank” button to get started.
- If your bank is already registered, all you need to do is enter your online banking login credentials to automatically link your account.
- If your bank is not enrolled, you will need the account number as well as the routing number.
- To find the Payoneer account’s account number and routing number, enter it into the Payoneer account.
- Begin using the US Remittance Service option.
- Turn on the “Receive Money” option.
- You will be given the Routing Number as well as the USA Virtual Account Number.
- Now enter your Routing Number and USA Virtual Account Number into your unregistered PayPal account.
- Following that, you will get two small payments via PayPal to your Payoneer account. You will be able to receive those deposits within two to three business days.
- After receiving deposits directed by PayPal, re-register for your PayPal account.
- After signing in, you must transfer the equivalent amount from your Payoneer account to your PayPal account.
- Your PayPal account will be instantly registered.
Guidelines for Payoneer Card
After successfully creating a Payoneer account, you should apply for a Payoneer Card in order to accept PayPal payments. Here are some crucial guidelines to follow.
- To apply for a Payoneer card, you must have a valid bank account.
- You will be required to enter your IBAN.
- Enter your username and password.
- Select a security question.
- Now enter your CNIC and click the order button.
