PayPal is an e-commerce service that allows the payments to be made electronically. It is a good alternative to traditional means of transferring the money by check or postal order. The money is transferred to or from the bank account or the credit card associated with PayPal account. It also charges fees for the transaction of money made through internet. This is a service provided by eBay to facilitate the customers with easy and hassle free approach to transfer the money from one place to another.

Unfortunately PayPal do not facilitate people of all the countries of the world to use this service. There are many countries in which this service is not available. In some other countries, PayPal provides only a limited service due to which people are effectively unable to make international payments.

There are several reasons due to which PayPal is not functional in many countries:

  • Issues with Banking Infrastructure

In some countries there are some issues with infrastructure. Banking infrastructure is out of order. It creates it impossible for PayPal to link the accounts with banks in present situation. This problem is not in hand of PayPal. Only the country’s authorities can sort out the problems and build the necessary infrastructure in order that PayPal may operate in those countries. There are no payment gateways in those countries which also make it difficult for PayPal to offer payment service in those countries.

  • Regulatory Issues

Regulatory issue also considered as hurdles too. So, it can be said that it is not the PayPal which is not coming in those countries but it’s the banks of the countries which are not well equipped with regulations as well as infrastructure

  • Bad Security Issues of the Country

Security is the most important factor which determines the intention of a multinational company to work in any foreign country. It is obvious that no one will be agreed to invest in a country where the lives are not safe. Poor condition of security, terrorism, crimes and other such factors determine the security condition of a country. It is the main reason due to which PayPal does not want to start this service in the countries where there is some issues with security. PayPal don’t want to make the lives of official staff at risk.


  • Non-Responsive Government Personnel

Sometimes when PayPal tries to contact with the concerned government personnel in order to meet to launch the service, the personnel do not respond to PayPal. They are simply no interested to facilitate the people with this service or they do not know the significance of PayPal in their country.

All these factors are responsible due to which PayPal is not operational in many countries. There is need to develop a good banking infrastructure. Government should be responsive in this regard. Moreover, people of the country should make the government know that they want PayPal and that needs a good infrastructure to execute all the processes of transferring money electronically with PayPal.