Paypal does not allow to receive payments for populations in 78 middle to low-income countries

Expanding access to financial services is a key element in fighting poverty1;p37. People with limited income could see significant improvement in their lives if they had more access to digital financial services (1;p7). Access to digital payments can boost revenues for the poorest users, reducing transaction costs by 90% and can expand financial inclusion (1;p62). International standards on consumer protection pay special regard to consumers of developing countries, recognizing that they face imbalances in economic terms, and stating that businesses should not subject consumers to discriminatory practices (2;p8-9).

Paypal is one of the leading digital payment platforms worldwide(3). Its mission is to create a world where “everyone”, regardless of economic standing, has access to affordable services; and it operates in 200 countries(4). However, it does not offer access to receive payments for users of 83 of those countries(5), amounting to more than 1 billion people worldwide(6). 78 of these countries are categorized as middle to low-income, 34 belong to Sub-Saharan Africa(7), the hardest-hit region by extreme poverty, and 23 are Small Island Developing States, a group of countries with economic vulnerabilities(8;p4). Although in some of these countries, there may exist alternative wallet platforms, the lack of access to Paypal payments and difficulty and high cost of getting paid is frequently cited as a real barrier by workers of online outsourcing in developing countries(9;p56).

At present, thousands of people in Nigeria(10), Zambia, Tanzania, and many more, have made public petitions to have access to receive payments through Paypal, as this is costing them economic and employment opportunities. Paypal has not disclosed the reasons why it does not offer access to payments in these 83 countries. Paypal should consider the needs of developing countries’ users and offer access to complete financial services without discrimination, to contribute to reducing inequalities in the global economy.

This Corporate Social Responsibility note was originaly published on Impaakt.com, on 23 October 2020. The original note can be found here.