State of Internet Commerce in Pakistan
Cost of Internet Merchant Acquisition is extremely High in Pakistan
For those who many not know it yet, Becoming an Internet merchant allows you to sell and charge consumer/customer credit card in real time where as a result money gets deposited in your bank account.
In short it is the basis of Electronic Commerce, espcially at consumer level.
Currently the cost internet merchant account in Pakistan is
Fee Charged by Citi Bank (the only bank in Pakistan providing internet merchant services)
Rs200,000 (aprox$4000/-) mandatory minimum bank balance with citi bank
Rs20,000 Annual Renewal fee
2.5%-4.5% on transaction
Then there is Cyber Net fee(Citi Banks integration partner)
Rs 45,000/- aprox ($800/-) one time fee
Rs10,800/- Annual Renewal fee
2.5% per transaction
You also need to provide proof of physical "respectable" presence in Pakistan, meaning a brick and mortar office with lots of people and big sign board.
Cyber net only has 20 Vendors(after being in market for more then 2 years with this service) using Internet based payment solutions. And among them they have Pakistan Railways, Shaheen Air and other heavy weights and has no small/boot strapped vendors.
Opening a shop on the internet will allow you to reach a market beyond your local sphere. It is the great or rather the only equalizer that can allow a "nobody" to get out of poverty. This can also provide an extremely important source of much needed Foreign exchange in the country.
However despite the tall claims by State Bank Of Pakistan and Ministry Of Information & Technology, Commerce and other stakeholder the situation is in front of you.
Pakistan has missed out on the Technology boat on many fronts. If an enabling environment is not provided soon enough for internet merchant account it may cost the country a great deal in terms of lost profits and revenue.
Tag: ecommerce csp state bank pakistan commerce merchant account citi cyber
For those who many not know it yet, Becoming an Internet merchant allows you to sell and charge consumer/customer credit card in real time where as a result money gets deposited in your bank account.
In short it is the basis of Electronic Commerce, espcially at consumer level.
Currently the cost internet merchant account in Pakistan is
Fee Charged by Citi Bank (the only bank in Pakistan providing internet merchant services)
Rs200,000 (aprox$4000/-) mandatory minimum bank balance with citi bank
Rs20,000 Annual Renewal fee
2.5%-4.5% on transaction
Then there is Cyber Net fee(Citi Banks integration partner)
Rs 45,000/- aprox ($800/-) one time fee
Rs10,800/- Annual Renewal fee
2.5% per transaction
You also need to provide proof of physical "respectable" presence in Pakistan, meaning a brick and mortar office with lots of people and big sign board.
Cyber net only has 20 Vendors(after being in market for more then 2 years with this service) using Internet based payment solutions. And among them they have Pakistan Railways, Shaheen Air and other heavy weights and has no small/boot strapped vendors.
Opening a shop on the internet will allow you to reach a market beyond your local sphere. It is the great or rather the only equalizer that can allow a "nobody" to get out of poverty. This can also provide an extremely important source of much needed Foreign exchange in the country.
However despite the tall claims by State Bank Of Pakistan and Ministry Of Information & Technology, Commerce and other stakeholder the situation is in front of you.
Pakistan has missed out on the Technology boat on many fronts. If an enabling environment is not provided soon enough for internet merchant account it may cost the country a great deal in terms of lost profits and revenue.
Tag: ecommerce csp state bank pakistan commerce merchant account citi cyber
