How PayPal Plans to Expand Across the Arab World in 2013 [Wamda TV]

by wamda,   February 13, 2013

Fresh off their partnership with Aramex announced late last year, PayPal’s General Manager for the Middle East and North Africa, Elias Ghanem, discusses the online payment gateway’s plans for continued expansion across the Arab world.

Starting with fully enabled merchant accounts in GCC and Jordan, which allow users to send and receive money, the platform has recently expanded to include consumer (send only) accounts in Yemen, Morocco, Tunisia and Algeria.

Next on their radar is the biggest remaining market in the region: Egypt. The Arab world presents some steep challenges for online payment gateways, especially with the popularity of Cash on Delivery (COD) and a general mistrust of and unfamiliarity with online payment in the region, but PayPal hopes to change that.

“We need to help e-commerce grow and our model is built for entrepreneurs,” says Ghanem. They hope to make it easier for small merchants, who comprise 99% of their customers, to use PayPal on their platform for a relatively low fee.

New online startups generally have low cashflow when they first start up, but rely on easy online payment methods to grow, he explains. With a model simply described as “if you sell you pay, if you don’t sell, you don’t pay,” PayPal is making it easier for merchants to sell their products and pay PayPal based on the sales they actually make.

Ghanem asserts that COD is the biggest inhibitor to the growth of e-commerce in the region. While it’s important for many startups, it kills the true value of e-commerce, creating extra burdensome friction. By creating trust through a proven and credible name, PayPal hopes to challenge COD and encourage more small merchants to sign on to the service.

Check out this brief interview at the Global Entrepreneurship Summit to see where PayPal is headed next and how they hope to empower small startups across the region.

Commentswith facebook
Commentswith Wamda
Sign in  to leave a comment
Not a member yet!
register now
jassica john , Mon 21.07.2014
Many in the United States are happy to see the Chinese workers making more money for making the goods we buy from them, or from our own companies with factories there. Some cite that it will bring back US factory jobs.
jassica john , Mon 21.07.2014
Before making a firm decision on a plan that looks attractive consult with a licensed agent about the possibilities that might happen after you submit an application to the insurer. In this article I will explain the possible scenarios that can happen once you apply.
jassica john , Mon 21.07.2014
The term "health insurance" is commonly used in the United States to describe any program that helps pay for medical expenses, whether through privately purchased insurance, social insurance or a non-insurance social welfare program funded by the government.
Loai Ayoub , Tue 19.02.2013
I don't think that the current PayPal's strategy would work in Arab world due to the complications they have , for example: if you are a merchant you need to have your own bank account at UK,USA, Australia...just few countries to get your money, also they have very strict policy for holding the merchants money for long time which make it very hard to accept such period & the high charges fees comparing to the other available online payment methods like credit card, prepaid cards...etc.