Introduction to PayPal
PayPal is an online payment system that facilitates online money transfers. PayPal works globally, and therefore helps people and parties to transfer money between one another through the internet. It serves as a convenient alternative to traditional money transfer methods such as cheques and money orders.
The company was established in 1998, and Paypal is now used across 200 countries worldwide and supports 25 different currencies. PayPal charges a small fee from all transactions that take place through its platform, which generates a significant share considering there are almost 200 million active users worldwide.
PayPal has in place safety features such as a Security Token and MTAN (Mobile Transaction Authentication Number) in order to prevent money fraud, theft, compromising, and leaking of personal data. Therefore, many online businesses based on the internet have adopted PayPal as a payment option within their services. Any user who holds a PayPal account could carry out online transactions within websites that allow PayPal.
The advantage of PayPal is that you don’t have to keep sharing your personal or financial details with many third-party sites on the internet; PayPal will make the payment for you in a secure and confidential manner.
How to Create a PayPal Account in Sri Lanka and Use PayPal
- Sign up for an account in the official PayPal website.
- Duly complete your personal details and bank or debit card or credit card information.
- Make sure that the account is verified.
- Log on to the website of your choice and proceed in online shopping.
- At the checkout stage, choose PayPal as the payment method.
- Enter the PayPal login credentials to process and confirm the payment – no need to keep entering the credit card details every time you make a purchase.
PAYPAL SRI LANKA CURRENT STATUS
Any Sri Lankan can make a PayPal account. Sending money through PayPal is allowed, but receiving money through PayPal to Sri Lanka is not possible as of now. MasterCard, VISA, American Express and Discover services are eligible when sending money out of Sri Lanka.
As of November 2018, it is reported that Sri Lanka is working on a National Financial Inclusion Strategy, mainly to facilitate online payment gateways and digital financial services. Central Bank Assistant Governor Asoka Handagama states that the Government realizes that small business are struggling to drive foreign revenue due to the absence of PayPal. Sri Lanka’s National Export Strategy states that the country is aiming to change laws so that international payment systems like PayPal could be used to receive payments for tech industry workers by the year 2020.
Timeline of PayPal in Sri Lanka
October 2018 – Sri Lanka aiming to change laws so tech industry workers can receive payments from PayPal by 2020.
March 2018 – Sri Lanka developing a National Financial Inclusion Strategy to facilitate online payment gateways and digital financial services.
December 2017 – Sri Lanka renews invitation for Paypal to start inward remittances
September 2016 – Sri Lankan Government announces plans to regulate e-commerce
February 2016 – PayPal cleared for operations within Sri Lanka
COVID-19 Pandemic in Sri Lanka
With the spread of the coronavirus and the subsequent lockdown and curfew throughout the country, the need for digital money transfer increased. The low access to cash and ATM services, as well as the threat of the virus spreading through cash transactions encouraged people to seek online means for transactions and payments.
Furthermore, more and more people resorted to working from home, which increased the need for facilities and services that enable online transactions. Due to such reasons, the call for Paypal to be fully functional within Sri Lanka started echoing further during the lockdown period.