The Reserve Bank of Malawi banned Pay Pal as a payment gateway in Malawi. This system has been used for years to make international payments worldwide, and Malawi was among those countries that benefited from the ease that PayPal brought as far as international trade is concerned.
According to Bloomberg report, PayPal isn’t available in Malawi. This means that users in Malawi cannot create PayPal accounts or use its services for transactions.
Without access to PayPal, individuals and businesses in Malawi must seek alternative payment solutions. This limitation affects both personal and commercial financial activities, restricting the ease of online transactions and international trade.
The National Bank of Malawi has put it forward saying the system was taking so much foreign currency from the Country.
Yet other organizations have argued that the very same, was also used by them to get donor funding from other countries there by increasing foreign currency in the country.
As it stands this move has affected many business owners who used to import commodities from other countries taking into perspective the fact that Malawi depends on imports.
Among other things, the ban has come at a cost as it is also contributing to the rise in prices on commodities.
Othe factors that economist, have labelled as stimulus to price increase on commodities includes the rise on import duty, Devaluation of the Malawi Kwacha. Increase on Value Added Tax, Increased inflation rates and more.
It further stands that the ban of Pay Pal Services in Malawi has heavily affected technology companies, those offering Web hosting and other digital marketing services. Digital creaters are also finding it difficult to push their way as these are among other factors that are contributing to the demonetization of Malawian Content on social media platforms.
