The idea of giving your credit card information to unknown persons over the internet to purchase something gives me the goose bumps. It is literally like giving someone a signed blank check – unsupervised access to the candy shop. However, digital wallets like PayPal became that buffer needed to protect consumers.
Unfortunately, it does not work as advertised in some third world countries including Papua New Guinea (PNG).
This articles touches on some of the advantages and disadvantages of having a PayPal account in PNG. The comparison is drawn mostly from personal experience but I will also source some information from other sources.
A Brief History of PayPal
According to the PayPal blog, the company was born in December 1998. However, initial conception started in September of the same year when Peter Thiel and Max Levchin launched Fieldlink; a security company that encrypted and turned Palm Pilots and PDAs into digital wallets.
The duo got together with Luke Nosek and Ken Howery to form Confinity and in 2000 merged with online banking company X.com started by Elon Musk. They retained the name X.com. However, surveys indicated that consumers found the name vague and potentially pornographic, and preferred PayPal. The company was later restructured and adopted the PayPal Inc.
After an IPO, PayPal was purchased by eBay and was a subsidiary of the world’s largest auction website from 2002 – 2014. It was purchased for US$1.5 billion and allowed eBay users to use PayPal payments. This proved a good move for both companies.
PayPal in Papua New Guinea
PayPal has been used in the country since the introduction of the internet. Unfortunately, it is only one way traffic for users yet. Users in PNG are only able to use the digital wallet to make purchases – receiving payments is not an option yet. However, there are hopes that this will change in the near future.
Opening a PayPal Account
Opening a PayPal account is easy. All you will need is a BSP Visa Debit Card or equivalent from other commercial banks that operate in country.
The advantages of having a PayPal account in PNG are that payment can be made on almost all websites for goods and services and it is secured.
The disadvantages of having a PayPal account in PNG are that users are unable to receive payment yet in PNG and also require a BSP Visa Debit card or equivalent.
Having a PayPal account in Papua New Guinea (PNG) is great if you are trying to make purchases online. However, if you are thinking of using it to receive payment then you will be disappointed.
The Payza Alternative
Payza is a digital wallet that I am currently using and it will accept payments. However, I have been unable to link it with my bank account. That is the only issue I have at the moment in PNG. You can try Payza if you want to or check with any commercial bank in PNG if they can facilitate PayPal accepts payments.
There were some arguments that an online payment gateway is needed in PNG which is to be guided and monitored by the Law and the Central Bank of PNG.
Share your experiences
If you have experiences that you believe will be beneficial for Papua New Guineans especially those who wish to use services like PayPal or Payza, then please share it with us.
Another promising option is the application of blockchain technology and the use of cryptocurrency (digital currency) that will solve most of the issues faced in online payments and transactions.
PNG is on the road to adopt the cryptocurrency (digital currency to assist online transactions) and the Central bank of PNG is doing some research into how to implement a Proof of Concept.
Again, in generic, this requires financial regulatory obligations and a Law that could govern the digital transactions in PNG should be passed in Parliament, or a submission of similar to NEC. – Via Garamut News.
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