Now, you can request for either check or an electronic withdrawal of funds from your Indian PayPal account. But after August 1,2010, you will only be able to request for a cheque withdrawal of funds from your PayPal account.

Already paypal reminded that any payments received into your PayPal account from the export of goods and services cannot be re-used for making purchases or any other payments. Now, this is a second blowfor an Indian Paypal user.

Some of the Indian paypal users suspect that paypal is going back to “check issuing strategy” so as to save bandwidth cost in electronic transfer. But I don’t think so. It is having problem with RBI especially in electronic transfer. If they issue check, the money would be accountable. But inelectronic transfer, a person can withdraw without revealing his/her PAN, which is mandatory to trace out your transaction.

Do you think paypal is going into 19th century instead of 21st century? You can get more details in the Paypal official blog

Paypal requires International Bank Account Number (IBAN)for each and every transaction. But 98% of the bank accounts in Pakistan don’t have IBAN number. Only 2% or may be less are using foreign currency accounts which have IBAN .

2. Stringent Laws in Pakistan

In TOS of Paypal, it clearly explains that the paypal supporting country should allow the member to send and receive money from all countries of this world. But the laws of Pakistan clearly suggest that Pakistan does not recognize Israel as state. Nobody can do direct transaction with this country. Moreover, the same scenario is noticed among the countries like Syria ,Iran, and Iraq because these countries would consider Israel as a country for smooth transaction.

3. Low Patronage To Local Banks by the Peoples of Pakistan

If more people are going to use paypal, nobody will turn their head towards local bank. So there would be a big blow to these local banks. They will end up in loss. So they are objecting paypal in Pakistan.

4. Low Subscriber Base

Paypal won’t support the country which is having low subscribers rate. So countries that paypal is not supporting don’t count for them anything.

Then, how a pakistan web owner can draw money. They can use Moneybookers or scriptlance also. In scriptlance, they can withdraw money directly to their bank account. Please click here to get more info.