How can Dropshipping sellers solve the problem of collecting payments in Pakistan?

For Dropshipping sellers, collection issues in Pakistan are mainly limited by local exchange controls, limited international payment channels and buyers' payment habits. Below are step-by-step solutions and considerations:

I. Mainstream collection methods and analysis of applicability

  1. PayPal

    • cutting edge: Globally available and trusted by buyers.
    • challenge: PayPal Pakistan only supports receiving payments (requires corporate account) and withdrawals need to be made through local banks (e.g. HBL, UBL, etc.) with higher fees (~4.4% + fixed fees).
    • take note of: Some individual buyers may not be able to pay with PayPal.

  2. Stripe

    • Pakistan is not listed as a Stripe-supported country and will need to register an offshore entity (e.g. Hong Kong company) or use a proxy service (possible compliance risk).

  3. Wire Transfer (TT/Wire Transfer)

    • Direct collection through local banks, but the process is complicated:
      • The buyer is required to submit a remittance request to the bank, providing the seller's IBAN/account number.
      • High handling fee (approx. per transaction)20-50) + potential intermediary bank charges.
      • Foreign exchange restrictions: The Central Bank of Pakistan requires export earnings to be settled in rupees within 120 days.

  4. Third-party cross-border payment platforms

    • Payoneer: Support Pakistani seller registration, receive multi-currency and withdraw cash to local bank (USD→PKR exchange rate loss is large).

  5. Western Union/MoneyGram
    Suitable for small personal transfers, but very high rates and not suitable for business use.

II. Optimisation solutions for Dropshipping

(1) Choose the appropriate e-commerce platform and payment gateway

  • Wise (formerly TransferWise)::
    Allows the creation of multi-currency accounts with virtual bank details (USD/EUR/GBP) and customers can transfer funds directly to your Wise account.
  • 2Checkout::
    Supports Pakistani merchants to access credit card payments (Visa/Mastercard) for standalone sites.
  • JazzCash/EasyPaisa::
    If the target customer is a local user can receive money through local mobile wallet (but need to solve the problem of funds out of the country).

(2) Alternatives in B2B scenarios

  • cryptocurrency::
    Some suppliers accept crypto payments to circumvent foreign exchange controls, but there is volatility risk and reliance on buyer co-operation.
  • [Alibaba Trade Assurance](Alibaba Trade Assurance)::
    If the source of goods is from China, you can settle the payment through AliPay (L/C or Escrow).

III. Key considerations

1️⃣ Compliance first:
Ensure that all transactions are in compliance with the Foreign Exchange Regulation Act (FERA) of the Central Bank of the Republic of Bakassi to avoid the legal risks of private exchange (Hawala).

2️⃣ cost control:
Comparison of total costs (exchange rate losses + handling fees) for different channels, e.g..
| Method | Rate Example | Arrival Time
|————|——————|———|
| Payoneer Withdrawal | 1% + PKR Depreciation Spread | 3 Working Days |
| Wise Money Transfer |0.6% Exchange Rate Difference | Instant |

3️⃣ user experience:
The supported payment methods are clearly labelled on the website, for example.

"We accept PayPal, Credit Cards (via Stripe), and Bank Transfer for Pakistani customers."

IV. Long-term recommendations

✔️ works with local distributors: Barkis collects the payment and settles the instalments.
✔️ applies for [Exporters' Specialised Foreign Currency Accounts] to allow the retention of a portion of foreign currency earnings.

For further operational details (e.g. how to register an offshore company), please inform us of the specific size of your business for a customised solution.

The following are advanced solutions and practical advice for Dropshipping sellers on collection issues in Pakistan, with step-by-step breakdown of the landing sessions:

I. Addressing the Core Pain Points of 'Capital Entry'

1. Curve withdrawals through third-party payment platforms (Payoneer as an example)

Applicable Scenarios: Stand-alone sites/e-commerce platforms have generated orders that require low-cost paybacks
workflow::

  1. Register for a Payoneer Business Account (Pakistani Business Licence + Corporate ID required).
  2. Bind a virtual US dollar account (USD receiving account number, shown as US bank information).
  3. After the customer has made a payment to the account, withdrawals are made in the following ways:
    • Option A: Withdraw cash directly to a local bank in Pakistan (automatic conversion to PKR with exchange rate loss of about 3-5%).
    • Option B: Transfer to a Wise multi-currency account → Convert to USDT → Withdraw via local OTC (avoids forex controls but is subject to crypto volatility risk).

⚠️ crux: Proof of transaction (Invoice/Purchase Order) is required for single transaction over $5,000.

2. Shopify merchant-specific programmes

If you use Shopify to build your website:

  • Activate Shopify Payments:
    A UK/Singapore company entity needs to be registered (costing around $500), and credit card payments can be accepted after signing up with this company.
  • Alternative programme "2Checkout":
    Directly integrated into the Shopify backend, support Visa/Mastercard/American Express, commission 4.5%+$0.45/pen.

Adaptation strategies to cope with local buyers' payment habits

(1) Installment Payment Tools (for high unit price items)

  • CreditBook:
    Barkis is a leading BNPL service provider, and the partnership offers customers a 'buy now, pay later' option.

(2) Mobile wallet aggregated payments

  • Finja Checkout:
    Integrate JazzCash/EasyPaisa and other local payment methods to the independent site checkout page.

📌 Sample code (WordPress plugin configuration):.

add_filter('woocommerce_payment_gateways', 'add_finja_gateway');

function add_finja_gateway($gateways){

    $gateways[] = 'WC_Finja_Gateway'; 

    return $gateways.

}

III. Grey means of circumventing exchange controls and risk warning

methodologies Pros cons
PayPal Balance Private Exchange Get instant access to PKR cash Exchange rate difference of up to 10%, vulnerable to fraud
USDT OTC Rapid exit of funds Violation of central bank regulations may result in the freezing of bank accounts.

✅ Compliance alternatives: ApplicationExport Processing Zone (EPZ)Enterprise status with preferential foreign exchange retention.

IV. Recommendations for phased implementation

🔹 Initial testing phase (<50 orders/month)

  • ✔️ Payoneer Collections + Wise Transit Reduces Losses
  • ✔️ Shopify shop enables COD (cash on delivery) to reach local customer base

🔹 Scale-up phase (>100 units/month)

  • ✔️ Register UAE FTA Company (FZC) to access Stripe/PayPal full functionality