Does PayPal work in Pakistan? How to use PayPal in Pakistan

PayPal is an American corporation that enables its users to transfer money across the globe. That said, you can easily send and receive payments in more than 200 countries quickly and efficiently as PayPal offers online transactions. Of course, the company charges a fee for the services it provides. Virtually, PayPal is just like a global bank where you can send and receive payments with just “one-click.”  So many people ask does PayPal works in Pakistan? We will try to explain this in detail below, Plus how to create a PayPal account in Pakistan.



It is doubtless that PayPal is regarded as the market leader as far as online monetary transactions are concerned. Its services are secure, super-quick, and reliable. PayPal has extended its services in approximately 202 markets while serving more than 286 million active users. Moreover, PayPal entertains its customers with transactions in 25 currencies.

PayPal was registered with the name “Confinity”  in December 1998. Later, Confinity merged in in March 2002. In 2001, Elon Musk, the founder of, renamed his corporation as PayPal. Since then, the company is operating under the same name. You can also access your PayPal account through its app on iOS as well as android.  


Why PayPal is not available in Pakistan?

PayPal account in Pakistan

There has been a lot of discussion about PayPal in Pakistan, and more often than not, people ask this one question, is PayPal available in Pakistan? Or Does PayPal work in Pakistan? Well, these are two different situations, but how? The answer to the first question is, NO PayPal is not available in Pakistan, and if things get more realistic, PayPal is not coming to Pakistan, at least not in the near future. Yes, it can be harsh for thousands of freelancers and many SMEs in Pakistan, but unfortunately, it is the moment of truth.

Does PayPal work in Pakistan? How to use PayPal in Pakistan

However, the other question is, Does PayPal work in Pakistan? To be honest, it is a tricky question, but let’s crack it like this. PayPal does not work in Pakistan, but still, you can create an account on PayPal in Pakistan and enjoy almost every perk offered by the company. The next question arises, how to make a PayPal account in Pakistan?

There will be a detailed guide for how to make a PayPal account in Pakistan, but before jumping to that section, let’s get to this question, why PayPal is not available in Pakistan? 

This is a bizarre fact that PayPal is offering services in almost 200 countries except for Pakistan? How so? This fact raised many eyebrows. There is no vivid statement from the company or the government of Pakistan why PayPal does not offer its services in Pakistan. Although the government has tried to convince the company to launch its services in Pakistan, nothing fruitful has happened so far. 

The government stated that the company is not offering its services due to its internal issues. However, “birds are chirping” otherwise. There are so many obvious reasons that are creating hurdles for the company to start operations in Pakistan, and here are few of them:

  • State bank’s license fee: State bank of Pakistan has some rigid policies for companies offering such services, and a license fee of $2.5 million is collected from such corporations. Well, $2.5 million is a hefty amount, and this can be one possible reason for the company’s reluctance.  
  • PayPal’s internal system and local laws of Pakistan: An introduction of a competitor is always an itchy thing for any business. It is said that banking laws and financial services policies also contradict with PayPal’s work policies, and it is difficult for local banks to integrate with the company. Local banks raised concerns about their personal interests. Nobody likes “intruders.”
  • Money laundering and frauds: It may sound harsh, but “pigeon cannot evade the cat with eyes closed.” That said, a weaker approach towards the frauds related to money, especially money laundering, has made things difficult for PayPal to start operations in Pakistan. 
  • FATF Greylist: Pakistan has been Greylisted by the Financial Action Task Force, and this means Pakistan is under severe scrutiny and monitoring regarding the financial matters. 
  • Lack of legal backing: when we talk about PayPal, we talk about millions of USD or currencies being transacted daily. It very impractical for PayPal to operate in a country that does not offer any legal backing or support. Keeping all these things in mind, PayPal in Pakistan seems to be a distant dream. 


How to make a PayPal account in Pakistan

account creation

Although PayPal is not offering its services in Pakistan, you can still make a PayPal account in Pakistan but with certain limitations. Here is how you can make a PayPal account in Pakistan:

  • Go to the official website of PayPal.
  • Sign up for free
  • Click the business account or personal account as per your requirements and click the “next” button to proceed.
  • Then comes entering a valid email address and generating a password. A strong password (includes alphabets and numeric) is always recommended for sensitive accounts like these. 
  • You will have to verify your account through email, so always use a valid email.
  • Fill-out the mandatory account form with your valid credentials to create your account on PayPal. 
  • While filling the account opening form, you have to provide a valid residential address from any country where PayPal is available (this is the tricky part). 
  • After providing mandatory information, an email confirmation will be needed. If you fail to confirm your email address, then you will not be able to initiate transactions.
  • Open your email’s “inbox” or “spam” folder and confirm your email address by clicking “Yes, this is my email” option. 

As mentioned earlier, PayPal offers two major types of accounts, personal and business. Business accounts have further two classifications, including a standard business account and a Pro account. A standard business account offers a regular “Check out” procedure while a pro account provides more options. A pro account costs you a $30 monthly fee while the standard business account is free.


Why does Pakistan need PayPal? 


Pakistanis are no short of talent, especially in the field of freelancing. You will be amazed to hear that Pakistan is ranked 4th in the list of countries offering top quality freelance services, and this is some achievement.

Pakistani freelancers are generating millions of dollars every year, and they need a reliable and easy to use the platform to get their payments, and what is a better option than PayPal? 

Apart from freelancers, there is another field that has shown a high potential of earning “hefty bucks,” and that is e-commerce. We all know that the world is shifting towards digital businesses, and this is becoming a need of time.

Pakistan has so much to offer to the world, and e-commerce is undoubtedly the best platform. Companies, sole proprietors, solopreneurs, and other businesses can sell their products or services to their foreign clients through e-commerce. But, they need a reliable channel like PayPal. 


Benefits Offered by PayPal

online shopping

PayPal is regarded as the industry leader, and it is trusted by millions of users. Here are some of the benefits of having a PayPal account:

  • Flexibility: PayPal offers greater flexibility for sending and receiving payments across the globe (almost 200 countries). 
  • Quick service: PayPal offers a quick transference of money. You can transfer your money from PayPal to your local bank within 3 to 5 working days (mostly 24 hours). 
  • Lesser transaction charges: Transaction charges in PayPal are 30 cents for every transaction plus 3% of the transaction’s total amount. It is very affordable as compared to its competitors.  
  • Safety: PayPal offers high security to its user, whether they are buyers or sellers. Its specialized “dispute resolution center” takes care of buyers and sellers without any prejudice.  
  • Privacy and security: PayPal has an impeccable security system that offers reliability and confidentiality to its customers. Your money is in safe hands. 
  • Record maintenance: PayPal records every transaction you make, and you can get your account details as well.  
  • Global channel: PayPal is a “virtual global bank,” and hundreds and thousands of foreign and local companies accept and send payments through PayPal. 
  • Multiple currencies: with PayPal, you can make transactions in 25 different currencies. 


Frequently Asked Questions

What is PayPal?

PayPal is an online platform where you can send or receive money online

Does PayPal work in Pakistan? 

No, officially, PayPal does not work in Pakistan, but you can create an account on PayPal in Pakistan and enjoy its benefit. Just follow the process of making the PayPal account in Pakistan mentioned above. 

How many types of accounts on PayPal?

There are different types of accounts on PayPal, including personal account, business account, premium account, student account, etc. however, people generally use personal accounts for their transactions.

Is PayPal a safe platform?

Yes, PayPal is a trusted company, and it offers impeccable security and privacy to its customers.  

Does PayPal only deals in USD?

No, you can send or receive money in 25 different currencies, including USD.

How can I make a PayPal account in Pakistan? 

You can make a PayPal account in Pakistan by following some simple steps mentioned above (in this article).

The Bottom line

One thing is clear as crystal, PayPal in Pakistan is a mandatory thing. Our country can get countless benefits if PayPal starts its operations in Pakistan. It can boost the e-commerce industry and will be extremely beneficial for freelancers as well.

Pakistani freelancers generate millions of dollars every year, and there are a lot of freelance platforms where you can receive payments only through PayPal in Pakistan. Our government should “loosen the screws” and make things easier for the e-commerce industry as well as other parties.

ShaharYar Ahmad Ranjha

A business graduate with a diverse educational background and working as a professional content writer for over a year. ShaharYar has penned more than 300 blog articles, landing pages, and ad copies related to Real Estate, Finance, Stock market, Information Technology, business, management, consultation, and much more.

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