e-Commerce and Payments in Pakistan
Adoption of broader digital payment methods is boosting the economy.
Pakistan’s economy is still primarily unregulated and cash-based. Except for big purchases that call for a bank draft or pay order, most transactions are done in cash. Pakistan currently has over 50 million Internet members as that number is anticipated to quadruple over the next five years, the economy is anticipated to rise rapidly.
Market Overview
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Population
231.4 million
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Online Population
87.35 million
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Currency
PKR
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e-Commerce Market Value
$5.6 billion
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GDP
$376 billion
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GDP per Capita
$3,768
Available Local Payment Method
EasyPaisa
Type
e-Wallet
Regions
Asia Pacific
Jazz Cash
Type
e-Wallet
Regions
Asia Pacific
Key Takeaways
- Cash-on-delivery is the preferred method of payment for online orders for 95% of e-companies.
- This causes e-commerce businesses to have specialized teams oversee cash receipts for the company, which raises operating costs and increases the liquidity requirements for those businesses.
- On Pakistani festivals and event seasons including Eid-ul-Fitr (June), Eid-ul-Adha (September), Black Friday, New Year, and Wedding Season, e-commerce businesses get high traffic (October through April). Major athletic events may encourage the buying of apparel and gear relevant to the event.
- The fact that just 24% of the population has a bank account raises the cost of doing business for e-commerce businesses dramatically.
