According to recent reports, PayPal, a popular online payment system, is gearing up to partner with an established international payment gateway. Through this partnership, international clients of Pakistani freelancers can make payments through their PayPal accounts. This development is expected to be announced shortly and will surely be a game-changer for the Pakistani freelancing community. The PayPal strategic partnership is expected to allow Pakistani freelancers to receive payments from clients worldwide, which is a widely recognized and trusted payment method. This partnership will undoubtedly benefit both freelancers and clients, as it will provide a more secure, efficient, and streamlined payment process.
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What is PayPal?
PayPal is a payment platform available through a website and phone app that allows individuals to transfer money between parties via online transactions. To use PayPal, customers must create an account and link it to a checking account, credit card, or both. Once identification and proof of funds have been verified, users can send or receive payments online or in-store using PayPal as a mediator. PayPal is accepted by millions of small and large retailers both online and in the physical world. Additionally, PayPal provides credit and debit cards that are branded with their name.
PayPal Strategic Partnership in Pakistan
Dr. Umar Saif, the caretaker minister for IT and Telecom, has announced that PayPal will soon be able to operate indirectly in Pakistan through a recent collaboration. This is great news for the growing freelance sector in the country, which is estimated to consist of around 1.5 million individuals and is the fourth-largest globally.
This development comes after years of persistent efforts by previous governments to bring PayPal to Pakistan, despite concerns over security. Dr. Saif highlighted the potential boost to IT exports and freelancer remittances that this move could bring, citing recent measures supporting a more liberal financial regime as a contributing factor to this positive trend.
Importance of PayPal in Pakistan
It’s worth noting that there has been a significant boost in inflows from IT exports, with an impressive 13% increase recorded in November. The government is keen to build on this momentum and has set an ambitious target of doubling IT exports from $2.6 billion to around $5 billion. To facilitate this growth, IT companies are now allowed to keep 50% of their export revenue in dollars in a local account, which will make international payments much simpler and more streamlined.
How Does PayPal Work?
PayPal provides payment services to both consumers and merchants who accept PayPal. Merchants can use a PayPal card reader for in-person transactions at their brick-and-mortar stores, or they can enable PayPal as a payment option on their websites. Consumers can easily pay invoices and transfer money. They can even send cash to any email address or phone number, regardless of whether or not the recipient has a PayPal account.
In order to sign up for a PayPal account, users need to provide an email address and a valid payment method such as a credit card, debit card or bank account. PayPal verifies the provided information to ensure that the person creating the account is the rightful owner. Once the setup is complete, shoppers can use the PayPal option to make purchases online, provided that the retailer supports the service. Transactions are processed quickly, usually within minutes, and PayPal guarantees that transfers are immediately available for payment or withdrawal to a bank account.
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Ending Remarks
PayPal strategic alliance enables Pakistani freelancers to receive secure and efficient payments from international clients. This partnership has the potential to benefit the 1.5 million-strong freelance community in Pakistan and the country’s IT sector. The partnership announcement by Dr. Umar Saif is a promising development toward doubling IT exports while simultaneously streamlining international payments and enhancing financial opportunities for the freelancing community in Pakistan. This marks a crucial step towards a more liberalized financial regime in the country.
