STAFF REPORT ISLAMABAD: The economic health of Pakistan is going to gain more strength in coming months and Pakistanis especially individuals would find themselves in a comfortable position to enhance their business interactions with the foreign world as PayPal is all set to start its operations in the country after a long wait on the part of masses.
PayPal has recently partnered with global money transfer company MoneyGram to allow its 118 million users to deposit and withdraw funds to and from their PayPal digital wallets from any one of MoneyGram’s 284,000 physical locations across the world, announced Dan Schatt, Head of Financial Innovations PayPal through the PayPal blog.
He said that the pilot run, which will be launched early next year, helps the payments giant pare down the number of steps it takes for a customer to go from “cash to commerce,” which should ultimately translate into more purchases, whether online or offline.
“In addition to the ease and convenience this will offer to new and existing PayPal customers, we are also excited about how our new relationship with MoneyGram will benefit our collective partners. For instance, our bank partners will be able to offer real-time money movement capabilities to be picked up at any service location,” Schatt said.
MoneyGram has an international reach through its 284,000 local agents across 196 nations and areas that offer real versatility and comfort.
The agreement envisages receipt of money with MoneyGram at Bank Al Falah, MCB, KASB, Bank Al Habib, Bank Islami, Soneri Bank, Habib Metropolitan Bank, Tameer Bank, Wall Street Exchange, Paracha Exchange, Royal Exchange, Dollar East and anywhere the MoneyGram sign is available.
This contains clients who would like to use their money to spend off-line or online wherever PayPal is approved, or for suppliers that want immediate access to the money obtained in their PayPal account. It will also provide a fast and protected way for clients with immediate money transfer needs, like mother and father requiring to deliver money to their kids in college, reported the PayPal blog.
“MoneyGram location, and our retailer partners will benefit from the ease by which PayPal consumers and businesses can now access their cash to engage and shop more across all channels particularly in Pakistan,” the statement uploaded at the PayPal blog said.
It’s worth mentioning here that MoneyGram also has a money transfer partnership with Walmart, where customers can make in-store transfers without needing a bank account or credit card. Walmart is also testing Bluebird, a new pre-paid card in partnership with American Express that targets a similar, lower-income demographic.
PayPal’s MoneyGram partnership fits in nicely with its big play to become the payments solution of choice not just on the web, but anywhere a customer can shop.
According to economic market experts, this partnership will open the door of opportunities especially for Pakistan who are presently facing a lengthy as well as tough procedure of money transactions with the foreign individuals or business houses.
Presently, the IT professionals and freelancers in Pakistan face numerous problems when it comes to receiving payments from clients. Similarly, it is difficult for the software companies to sell their products internationally. Annual online spending by US was 202 billion by the end of year 2011. It will increase by 226 in 2012 and 327 in 2016.
“Now the arrival of PayPal in Pakistan will reduce transaction cost and hassles,” remarked Syed Khalil Raza, a classified businessman, adding currently the local businessmen rely on less reliable modes of payments which are not only slow but are costly too.