How to Create a PayPal Account in Pakistan: A Step-by-Step Guide

In today’s digital age, having access to global payment platforms like PayPal is essential for freelancers, online shoppers, and businesses. However, for Pakistanis, using PayPal has always been a bit of a challenge due to restrictions on receiving payments. Despite these limitations, creating a PayPal account in Pakistan is still possible and can be incredibly useful for sending payments, shopping online, or managing subscriptions.  

In this blog post, we’ll walk you through the process of creating a PayPal account in Pakistan, highlight its limitations, and suggest alternatives for receiving payments. Let’s dive in!  

Why Create a PayPal Account in Pakistan?

PayPal is one of the most widely accepted online payment platforms globally. While Pakistani users cannot receive payments directly into their PayPal accounts, they can still use it to:  

• Make international purchases.  
•  Pay for subscriptions (e.g., Netflix, Spotify).  
• Send money to friends, family, or businesses abroad.  

For freelancers and businesses, PayPal’s limitations in Pakistan can be frustrating, but there are workarounds (more on that later).  

Step-by-Step Guide to Creating a PayPal Account in Pakistan

Step 1: Visit the PayPal Website

Go to www.paypal.com and click on the "Sign Up" button located at the top-right corner of the homepage.  

Step 2: Choose Your Account Type

Select "Personal Account" (as business accounts may not be fully functional in Pakistan). A personal account is sufficient for most users, including freelancers and online shoppers.  

Step 3: Enter Your Details  

Fill in the required information, including:  

• Your email address (use a valid one, as PayPal will send a verification email).  
• A strong password.  
• - Your full name, address, and phone number (use your Pakistani address and phone number).  

Step 4: Verify Your Email  

After signing up, PayPal will send a verification email to the address you provided. Open the email and click on the verification link to confirm your account.  

Step 5: Link a Payment Method  

To use PayPal, you’ll need to link a credit or debit card (Visa or MasterCard). Unfortunately, PayPal does not currently support linking Pakistani bank accounts directly.  

1. Log in to your PayPal account. 
2. Go to the "Wallet" section.  
3. Click on "Link a Card" and enter your card details.  

Step 6: Verify Your Card (Optional)

PayPal may ask you to verify your card by charging a small amount (usually less than $1). Check your card statement for the code and enter it on PayPal to complete the verification process.  

Step 7: Start Using PayPal

Once your account is set up and your card is linked, you can start using PayPal to:  

• Shop online on international platforms.  
• Pay for subscriptions like Netflix, Spotify, or YouTube Premium.  
• Send money to friends or family abroad.  

Limitations of PayPal in Pakistan

While creating a PayPal account in Pakistan is straightforward, there are some limitations you should be aware of:  

1. Cannot Receive Payments: Pakistani users cannot receive payments into their PayPal accounts. This is a significant drawback for freelancers and businesses.  
2. No Direct Bank Withdrawals: Since you cannot receive payments, withdrawing funds to a Pakistani bank account is not possible.  
3.  Currency Restrictions: PayPal accounts in Pakistan are typically set to USD by default, which may incur currency conversion fees.  

Alternatives for Receiving Payments in Pakistan

If you’re a freelancer or business owner looking to receive international payments, here are some alternatives to PayPal:  

1. Payoneer:  

• Allows you to receive payments and withdraw funds to a local bank account.  
• Provides a virtual US bank account for receiving payments.  

2. (Wise (Formerly TransferWise)  

•    Offers multi-currency accounts with low fees for international transfers.  
•    Allows you to receive payments in USD, EUR, GBP, and other currencies.  

3. Skrill:  

•    A digital wallet that works in Pakistan and supports receiving payments.  
•    You can withdraw funds to a local bank account.  

4. Stripe:  

•  Available for businesses in Pakistan, but requires a US bank account or partnership with a local payment gateway.  

Tips for Using PayPal in Pakistan

•  Always use a valid email address and phone number during sign-up.  
•  Keep your PayPal account secure by enabling two-factor authentication (2FA).  
• Use a credit or debit card with international transaction capabilities.  
•  Be aware of currency conversion fees when making payments in USD.  

Final Thoughts

While PayPal’s limitations in Pakistan can be frustrating, creating an account is still beneficial for sending payments and making online purchases. For receiving payments, consider using alternatives like Payoneer or Wise. By following the steps outlined in this guide, you can easily set up and start using PayPal in Pakistan.  

Have you created a PayPal account in Pakistan? Share your experience in the comments below! If you have any questions, feel free to ask—we’re here to help!  

Disclaimer: PayPal’s policies and features may change over time. Always check the official PayPal website for the latest updates.