Google Pay in Pakistan

The introduction of Google Pay in Pakistan is a significant milestone in digital payments, though it has its difficulties as well. Although mobile payment systems are popularly used all over the world, Pakistan has certain issues that might hinder the rapid adoption of Google Pay.

One of the main problems is the absence of Near Field Communication (NFC) in a lot of mobile devices. Not everyone in Pakistan has access to NFC enabled devices, and a good portion of the population still uses low tier or outdated mobile phones. While the use of smartphones is increasing, a significant portion of the rural population is not financially capable of purchasing high-end smartphones equipped with NFC technology. Hence, users in these regions will not be able to make contactless payments using Google Pay. Consequently, people who live in urban regions with advanced smartphones will be able to use Google Pay, decreasing the services reach.

Another problem is answering the willingness of merchants to accept Google Pay. While some large retails merchants have embraced the contactless digital payment strategy, smaller businesses particularly street vendors may be more resistant to change. They may have doubts regarding the implementation of Google payment system into their platform or may be apprehensive about the potential costs associated with the transactions. Until Google Pay is embraced by businesses operating in various Google Pay is of little benefit to the consumers.

The most important factor Trust and security have a major impact on the success of payment systems. Fraud and cyber crimes is becoming a serious problem for the public in Pakistan, and may not believe in adopting a new payment system such as Google Pay. In order to do so, Google Pay will have to create a level of confidence that would guarantee user’s information will not be compromised and every transaction done will be safe.

Lastly, there's the matter of providing reliable internet connectivity. Internet coverage in Pakistan has improved, but there will always remain some segments with poor or erratic coverage. Google Pay functions solely with stable internet, and in parts of the world where internet services are inconsistent, making payments may be complicated for users. This can narrow the usefulness of the app even more.

Google Pay has the ability to improve financial inclusion in Pakistan; however, it is also challenged by several obstacles. Such obstacles include insufficient adoption of NFC-enabled devices, vendor security issues, and poor internet connectivity. If these challenges are dealt with, Google Pay has the potential to become a popular payment option in Pakistan.