How to Use PayPal in Pakistan? | Send Payments via the App

For years, Pakistani freelancers, online shoppers, and digital entrepreneurs faced a significant hurdle: the limited availability of PayPal. While the landscape isn't perfect, you can absolutely use PayPal in Pakistan to make international payments directly from your smartphone.

This definitive guide will walk you through everything you need to know about downloading, setting up, and using the PayPal app in Pakistan.

Understanding PayPal’s Limitations in Pakistan

Before we dive into the "how-to," it's crucial to understand what you can and cannot do with a Pakistani PayPal account.

• ✅ What You CAN Do: You can create a PayPal account, link your local debit or credit card, and send payments internationally. This means you can shop on global websites like eBay, Amazon (international), pay for software subscriptions (Adobe, Spotify), and even make payments on freelancing platforms like Upwork.

• ❌ What You CANNOT Do: You cannot receive personal payments or hold a balance in your PayPal wallet. The account is primarily for outgoing transactions.

For Freelancers: There is an official workaround to receive payments via PayPal using Payoneer. We will cover that in detail later in this article.

Step-by-Step: Setting Up PayPal on Your Phone

Step 1: Download the Official PayPal App

First, head to your device's app store:

• Android Users: Open the Google Play Store.

• iPhone Users: Open the App Store.

Search for "PayPal" and download the official app developed by PayPal Mobile.

Step 2: Create Your Personal Account

1. Open the app and tap "Sign Up."

2. Select "Personal Account." (This is the correct choice for most users; business accounts have the same receiving limitations).

3. Select your country (Pakistan) and enter your mobile number for verification. You will receive an SMS code to confirm.

4. Fill in your details: Use your primary email address (this becomes your PayPal ID), create a strong password, and enter your legal name and address as they appear on your bank statements.

Step 3: Link Your Pakistani Debit or Credit Card

This is the key to activating your account for payments.

1. Log into the app and tap the Wallet icon (usually at the bottom).

2. Tap "Link a card or bank" and choose "Debit or Credit Card."

3. Carefully enter your card details:

   • Card Number

   • Expiry Date

   • CVV Security Code

   • Billing Address

Pro Tip: Most Visa and MasterCard debit/credit cards from major Pakistani banks (HBL, UBL, MCB, etc.) work perfectly. Ensure your card is internationally enabled by contacting your bank's customer support.

Step 4: Verify Your Card (The Small Charge)

To confirm you are the real card owner, PayPal will make a small temporary authorization charge (around $1.99 USD).

1. Within 2-3 days, check your bank statement via your bank's app for this charge.

2. The transaction description will include a 4-digit code.

3. Go back to the PayPal app, find your card in the wallet, and click "Confirm Card."

4. Enter the 4-digit code. Once verified, the hold on the small amount will be released.

Congratulations! Your PayPal app is now ready to use for making payments.

How to Send a Payment Using the App

Making a payment is straightforward:

1. When shopping on an international site, choose PayPal at checkout.

2. You will be redirected to the PayPal login. The app will often open automatically.

3. Review the payment summary. The amount will be shown in USD and its converted value in PKR.

4. Select your linked Pakistani card as the funding source.

5. Click "Confirm Payment."

The amount, along with a small currency conversion fee, will be charged directly to your bank card in Pakistani Rupees.

How Can Pakistani Freelancers Receive Payments?

This is the most common question. While you can't receive money directly into your PayPal balance, here is the official workaround using Payoneer:

1. Create a Payoneer Account: Sign up for a free account on Payoneer's website. Complete their verification process (requires CNIC, etc.).

2. Access US Payment Details: Once approved, Payoneer provides you with a virtual US bank account number and routing number.

3. Receive Client Payments: Provide these US bank details to your international client. They can then use PayPal to send a payment to this US account as a domestic transfer, which is a standard feature for them.

4. Withdraw to Pakistan: The funds arrive in your Payoneer account, not PayPal. You can then withdraw the money directly to your local Pakistani bank account in PKR.

Major platforms like Upwork and Fiverr have direct withdrawal integrations with Payoneer, automating this entire process.

Important Tips and Fees

• Fees: PayPal charges a currency conversion spread (typically around 4%). Always check the final PKR amount before confirming a payment.

• Security: The PayPal app is highly secure. Enable two-factor authentication in the app settings for an added layer of protection.

• Customer Support: If you encounter issues, use the "Help & Contact" section within the app to get support.

Final Verdict

Yes, you can use the PayPal app in Pakistan effectively for outbound transactions. It unlocks a world of global e-commerce and digital services. For freelancers, the Payoneer partnership provides a viable, though indirect, path to receive earnings.