Introduction
In today’s digital economy, online payment platforms like PayPal play a crucial role in global trade, freelancing, and e-commerce. From purchasing software subscriptions to receiving freelance payments, PayPal is one of the most trusted and widely used electronic payment systems in the world.
However, a question that constantly trends among Pakistani freelancers, entrepreneurs, and business owners is:
“Can we use PayPal in Pakistan?”
The short and simple answer is No — PayPal is not officially available in Pakistan as of 2025. But the reasons behind this absence are complex, involving regulatory challenges, financial restrictions, and digital infrastructure gaps.
This article explores why PayPal is not available in Pakistan, what alternatives exist, and what steps the government and financial institutions can take to make PayPal’s arrival possible in the near future.
What is PayPal and Why is it Important?
Founded in 1998, PayPal is a US-based electronic payment system that enables secure online transactions between buyers and sellers, freelancers and clients, or individuals sending money internationally.
With over 430 million active users globally, PayPal dominates the online payment industry. It allows users to link their bank accounts, debit, or credit cards to send and receive payments instantly — without revealing sensitive financial information to the other party.
Why PayPal Matters for Pakistan
For Pakistan, PayPal isn’t just a convenience — it’s a gateway to financial inclusion and global connectivity.
- Pakistan ranks among the top 5 countries for freelancing worldwide, according to various global indexes.
- Thousands of Pakistani freelancers work on platforms like Upwork, Fiverr, and Freelancer.com, yet they struggle to receive payments easily.
- E-commerce businesses also face difficulties integrating trusted international payment gateways.
Having PayPal operational in Pakistan could:
- Boost freelancer earnings by simplifying cross-border payments.
- Enhance trust in online transactions.
- Support export-oriented digital businesses and e-commerce growth.
Can We Use PayPal in Pakistan Right Now?
As of 2025, PayPal is not directly available in Pakistan.
Pakistani residents cannot create or verify a PayPal account using local information such as a Pakistani address, CNIC, or bank account. Attempts to sign up will typically show an error stating that PayPal services are not available in your country.
What About PayPal via Payoneer?
In late 2023, Pakistan’s caretaker IT Minister Umar Saif announced that PayPal would operate indirectly through Payoneer — sparking widespread hope. However, this claim was later clarified as misleading.
According to official sources and Payoneer’s own documentation:
- The partnership between PayPal and Payoneer is global, not Pakistan-specific.
- It allows Payoneer users worldwide to use PayPal as one of the payment methods only for sending payments, not for opening or using PayPal accounts in restricted countries.
In simple terms:
You can receive payments via Payoneer, but you still cannot open or use a PayPal account directly in Pakistan.
Why PayPal Isn’t Available in Pakistan
Despite Pakistan’s massive freelancing market and demand for online payment gateways, PayPal remains reluctant to enter Pakistan’s market. Let’s explore the main reasons.
Regulatory Challenges and Licensing Restrictions
The State Bank of Pakistan (SBP) regulates all Electronic Money Institutions (EMIs) under strict compliance frameworks.
To operate legally in Pakistan, PayPal would need to:
- Obtain an EMI license.
- Maintain an initial capital requirement of PKR 200 million.
- Complete a three-phase approval process — in-principle approval, pilot operation, and full-scale operation.
- Comply with stringent Know Your Customer (KYC) and Anti-Money Laundering (AML)
These regulations, while intended to protect consumers, create high entry barriers for international payment providers.
Moreover, Pakistan’s regulatory quality index ranks among the lowest in Asia, indicating bureaucratic inefficiency and complex approval processes. For PayPal, whose business model runs on high transaction volume and low margins, such compliance costs make the Pakistani market less attractive.
Money Laundering and FATF Concerns
Another major barrier is the Financial Action Task Force (FATF)’s monitoring of Pakistan for money laundering and terror financing risks.
Although Pakistan was removed from the FATF “grey list” in 2022, the lingering perception of financial risk still discourages companies like PayPal from entering.
However, research from the Pakistan Institute of Development Economics (PIDE) shows that PayPal already operates in many countries with higher money-laundering risk scores than Pakistan.
Thus, FATF concerns alone are not the decisive factor — they merely add to an already complex regulatory environment.
Exchange Control and Data Privacy Restrictions
PayPal operates on a two-way fund transfer model, allowing both inflow and outflow of money.
For Pakistan, which faces foreign exchange shortages and strict capital controls, this poses a challenge. The State Bank of Pakistan (SBP) fears that unrestricted outward transfers might increase pressure on the foreign reserves.
Additionally, data localization laws and privacy concerns make it complicated for global fintech firms to comply with local data storage requirements.
Still, as analysts note, many other countries with similar restrictions have managed to host PayPal successfully — proving that the issue lies more with implementation and coordination than policy itself.
Weak Digital Infrastructure and Low E-Governance
For PayPal to operate efficiently, it requires a strong digital payment ecosystem, stable internet infrastructure, and high e-commerce penetration.
Unfortunately, Pakistan lags behind in all three areas:
- Low digital literacy and trust in online transactions.
- Poor integration of banks and digital wallets.
- Weak E-Government Development Index (EGDI) and E-Participation Index (EPI) scores among Asian countries.
Even though digital payments through JazzCash, Easypaisa, and Raast are growing, the e-commerce volume remains too low compared to regional competitors like India, Malaysia, and Indonesia.
Profitability and Market Attractiveness
PayPal evaluates potential markets based on profit potential, ease of doing business, and legal certainty.
In Pakistan:
- High compliance costs reduce potential profits.
- Currency volatility increases business risk.
- Lack of central payment gateway integration complicates operations.
Thus, from a business standpoint, Pakistan’s return-on-investment (ROI) doesn’t yet justify PayPal’s entry — even though the freelancer and SME demand is massive.
Alternatives to PayPal in Pakistan
Although PayPal is unavailable, several reliable alternatives operate successfully in Pakistan.
Payoneer
- Widely used by freelancers and remote employees.
- Allows payments from Upwork, Fiverr, Amazon, and other platforms.
- Users can withdraw funds directly into Pakistani bank accounts.
Wise (formerly TransferWise)
- Enables low-fee international transfers.
- Provides borderless multi-currency accounts for receiving payments.
Skrill and Neteller
- Both offer digital wallets that connect to Pakistani banks.
- Popular among freelancers, gamers, and forex traders.
Raast (by SBP)
- Pakistan’s own instant payment system.
- Supports peer-to-peer transfers and aims to link local fintechs for future integration.
JazzCash and Easypaisa
- Widely accessible mobile wallets.
- Integration with Payoneer allows partial solutions for freelancers.
While these platforms provide short-term relief, none offer the global reach and credibility of PayPal, which remains the most recognized name in international payments.
What Would It Take to Bring PayPal to Pakistan?
To make PayPal’s entry viable, Pakistan needs to focus on the following reforms:
-
Simplify EMI Licensing Regulations
- Lower capital requirements for fintech entrants.
- Streamline approval stages and compliance documentation.
-
Enhance Financial Transparency
- Strengthen digital KYC and AML systems to satisfy international standards.
-
Improve Ease of Doing Business
- Offer tax incentives or operational benefits to attract global fintech companies.
-
Invest in Digital Infrastructure
- Expand broadband coverage, secure data centers, and enable cross-bank integration.
-
Encourage E-Governance and Digital Literacy
- Build public confidence in online financial systems through education and awareness.
If these reforms are implemented, Pakistan could become a lucrative market for PayPal and similar global platforms, opening vast opportunities for freelancers, startups, and e-commerce businesses.
Final Thoughts
So, can we use PayPal in Pakistan?
Not yet — at least not officially.
Despite repeated government announcements and global partnerships, PayPal has no operational presence in Pakistan as of 2025.
The reasons range from regulatory hurdles and financial restrictions to limited digital readiness. However, the country’s growing freelancer community and expanding e-commerce market continue to increase the pressure for a solution.
Until PayPal arrives, Pakistani professionals must rely on alternatives like Payoneer, Skrill, Wise, and Raast.
But with the right policy reforms, digital modernization, and investor-friendly environment, Pakistan could soon transform into a market ready for global fintech leaders like PayPal — bridging the gap between local talent and global opportunity.
Frequently Asked Questions
Can you withdraw money from PayPal in Pakistan?
Short answer: No, not directly.
- PayPal does not officially support Pakistani residents for full PayPal account services (i.e., you cannot fully withdraw funds to a Pakistani bank account).
- For example, a PayPal community member from Pakistan wrote:
“Paypal is not available or supported in Pakistan unfortunately. … you will never be able to verify or withdraw funds from.”
- Many guides say you cannot link a Pakistani bank or wallet to PayPal for withdrawals.
- Some local workaround services (unofficial) claim to convert PayPal funds into PKR using intermediary systems, but these are neither official PayPal solutions nor guaranteed safe.
- The official PayPal documentation shows the list of countries where “receive and withdraw” are supported; Pakistan is not listed.
Conclusion: If you are in Pakistan, using a standard PayPal account to withdraw funds to a local bank is currently not supported by PayPal.
What is the “$20 fee” with PayPal?
It depends on which $20 you’re referring to. There are a few different $20-type fees mentioned in PayPal’s or community resources:
- One fee: Inactivity fee (for some regions): If you don’t log in or transact for 12 months, PayPal may charge the lesser of your balance or USD 20 CAD (Canadian dollars) in some jurisdictions.
- Another: A chargeback/dispute fee: According to one business-fee resource, PayPal charges a $20 USD fee (in the U.S.) if a customer initiates a chargeback and you lose the dispute.
- A scam context: There are community posts where someone claims they were asked “$20 needed” to reflect a payment — flagged as a scam.
So if you see “$20 fee” in a PayPal-context, check which fee type: Is it inactivity, chargeback/dispute, or something else? Also check which country’s fee schedule applies to you, because fees vary by region.
Can Pakistan use Cash App?
The short answer: No, at least not fully, for new accounts and full functionality.
- According to official Cash App info: “Only residents of the United States can create Cash App accounts.”
- Articles about “does Cash App work internationally?” say that aside from US ↔ UK in some cases, Cash App does not support other countries, including Pakistan.
- A Reddit user from Pakistan in 2025:
“cash app isn’t available in PK so that’s a non starter unless they send you bitcoin.”
Conclusion: If you are in Pakistan, you cannot reliably create or use a full Cash App account (peer-to-peer, receive/send) as one would in the U.S. Using it would involve workarounds which may violate terms of service or be risky.
How much is PayPal in Pakistan?
If by “how much is PayPal in Pakistan” you mean “what is the cost/fee or availability”, here’s summarized:
- PayPal isn’t officially supported for Pakistani-resident withdrawal to bank accounts. So “cost” in terms of a regular withdrawal isn’t officially defined for Pakistan.
- For transactions where PayPal is supported (other countries), fees depend on type: domestic vs international, currency conversion, goods/services vs personal. Example: in the U.S., receiving payments for goods/services might be ~2.9% + fixed fee.
- For Pakistani users needing to get paid internationally, many rely on alternative services (e.g., Wise, Payoneer) or using an intermediary country/residence. See article: “PayPal in Pakistan: Why It’s Not Available and What You Can Do”.
If you meant “what is PayPal rate / exchange rate / fee for Pakistan”, there’s no simple official one because the service is not fully available.