Payment Options for E-commerce companies in Pakistan
Here are the payment options that you can use for your e-commerce website in Pakistan.
Bank Payment Gateways:
Following banks have payment Gateways available for e-commerce transactions.
- Habib Bank Limited
- Bank Alfalah
Hbl, MCB & UBL offer a merchant account for e-commerce. You have to open a bank account with the bank and integrate API. They do provide plugins for some platforms but they will not necessarily work all the time. Also, another similarity is that all 3 do not provide APIs to handle the transaction on your website. You forward all the cart information via API to their secure site and customer enters card information and then is redirected back to your website. This is not the best option as an e-commerce website because the customer has to wait for a new page to load and the UI is not great on mobile.
Alfalah bank is the new entrant in the market and is powered by MPGS (Master card payment gateway system), they do offer API to manage transaction on your website but this is not a service we have used and therefore do not have any specific feedback. If you are using this service, please do let us give us feedback.
All banks ask for a initial signup of around Rs100,000 and an annual fee of Rs50,000. But this can be negotiated depending on your transaction volume and social contacts. Transaction charges are around 3.5%.
Following Mobile wallet merchant services are available for e-commerce websites.
- Telenor Bank or Easypaisa
- Jazz Cash
All 3 mobile wallets also have API documents and plugins available for some e-commerce platforms. The system also works the same way where the user is redirected to their webpage with the exception of Jazz Cash which is also using MPGS same as Bank Alfalah.
None of the mobile wallets charge a signup or annual fee but transaction charge is 3.5%.
International Payment Providers:
The only real option you have is 2CO (2checkout). Requirements include company and personal documents to open an account along with a waiting period. Brands like Sana Safinaz & Khaadi use 2CO for credit card transactions. Plugins are readily available for almost all e-commerce platforms and can be easily integrated. Transaction fee is 3.9% + 45 cents. Also, keep in mind that money is collected in USD and transferred to your local PKR account so you also end up paying an additional exchange rate fee.
Recommendation: We recommend using 2CO if you can afford to pay around 8% in total in transaction fee and you have a lot of international customers. Otherwise get a Mobile wallet service since its free and you can also participate in discount campaigns offered by Easy paisa and jazz cash. We still haven’t used MPGS by Bank Alfalah, it sounds like the service which is needed but hard to say at the moment.
If any information you feel is not correct. Please contact us and we will update the article.