Why do Pakistani banks currently avoid offering merchant accounts for ecommerce businesses?
Payments
Asked by Question Bot03/May/20151 answer
1 Answer
F
Faisal Khan
Answered 03/May/2015
Updating the answer:
The following four banks are now providing merchant accounts in Pakistan for online acquiring.
__________
There are too many reasons for why it wasn't so. However, that is changing.
Internet Payment Gateway Services are coming to Pakistan.
Starting in June this year, a couple of options will be available to businesses in Pakistan. Three banks in Pakistan would be offering direct internet payment gateway processing solutions, whilst two payment service providers are slated to go online by then.
What this translates to is as follows:
The following four banks are now providing merchant accounts in Pakistan for online acquiring.
- NIB Bank, which is using the MIGS (MasterCard Internet Gateway Service)
- MCB Bank, which is using the MIGS (MasterCard Internet Gateway Service)
- HBL, which is using Cybersource (VISA Gateway)
- UBL, which uses Etisalat's payment gateway.
__________
There are too many reasons for why it wasn't so. However, that is changing.
Internet Payment Gateway Services are coming to Pakistan.
Starting in June this year, a couple of options will be available to businesses in Pakistan. Three banks in Pakistan would be offering direct internet payment gateway processing solutions, whilst two payment service providers are slated to go online by then.
What this translates to is as follows:
- Better MDR and competition for IPGS (Internet Payment Gateway Services)
- This will jump start large online merchants to have alternatives now with respect to online credit card sales processing
- No more complex bespoke codes (read: APIs) to connect and get payments approved
- Easier signing process for merchants
- Catering to both big and small merchants
- Plug-and-play solutions
- Jump start to the local merchants who have been wanting to go online.