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PayPal, one of the leaders in online payments, finally opened its doors to Philippines users and is successfully attracting Filipino merchants, sellers and buyers alike. Most of these online merchants and providers jumped into this opportunity, as it has been a number of pleading years before the company heeded the call.

Since work-from-home opportunities are becoming more and more popular, a need for a convenient and secured real-time online payment arose. Most of these opportunities pay income through PayPal and thus, Filipino providers were hindered from earning and availing of the numerous legitimate online jobs. Even online shopping was seen to be tedious and disappointing since online auctions and stores accept either PayPal or credit cards as a mode of payment. It was like a technological impediment for Filipinos, obstructing the road to technological development and freedom. A few merchants were able to find ways around to be able to meet their needs but still it was not enough.

Subsequently, after PayPal and EBay announced around late 2007 that PayPal is now available in the Philippines, questions, from the most basic to the most delicate and complex, regarding PayPal and its requirements popped up and filled up pages of threads in forum sites. The question now is, how far has it been effective for most users? Or has the impediment really been knocked down?

So here’s what I found out:

1. You cannot add funds to your PayPal from your Philippine bank account
2. You can add a credit card or debit card to be verified
3. The most common debit card, conveniently available with minimal requirements, is Unionbank s EON Card, which can be applied for online.
4. However, I assume that due to the unforeseen influx of applicants, as of the first week of October 2008, the bank’s online application is currently on hold
5. You can withdraw your PayPal funds to your Philippine bank account, with a service fee of 50 PhP (around 1 USD) for withdrawals amounting to below 7,000 PhP (around 160 USD); or to your credit card for 5 USD

True indeed that much of the impediment has already been put away since merchants and sellers can receive their well-earned money in their PayPal accounts. Nevertheless, there are still other users who have a different purpose for their accounts and this is, to facilitate their payments to online stores and sellers. Right now, there are 3 ways to fund PayPal accounts in the Philippines: first, to transfer funds from an EON Card; second, to add funds using a credit card; or lastly, to receive PayPal funds from another PayPal account.

Another thing about a number of these buyers is that not a lot of them have the qualifications to be able to acquire a credit card and that is another barrier to be able to conveniently shop and purchase online. Though EON Card is available with just minimal requirements, the local bank seems to be taken aback with the sudden rush of applicants, so much that its system seems to become inefficient to the point of months of delay of the approval and release of the plastic electronic cards and imprudent measure of providing the EXPUSE number over the phone. Last resort then is to work really hard and get paid through PayPal. Or have someone you know who has PayPal funds to transfer funds to your own account then just pay them back, preferably with a little incentive to increase chances of having them transfer funds the next time around. But then, in all of these ways, there are certainly financial risks involved. It all boils down to a matter of good discretion and foresight in deciding whether to add your credit/debit card and bank account information.

There are so many apprehensions about online payments especially in the Philippines where it is relatively a new development. One must balance significant matters of convenience and of security. Security may be at a peril if the market would push for a more convenient system, while convenience would be hampered if the primary and sole consideration for the operation is security. Right now, PayPal Philippines is at an initiatory stage and it just proper that security dominates convenience, for the meantime. Hopefully, the system would soon find its place comfortably.