Even though the claim has less evidence than a leprechaun convention, the Prime Minister of Montenegro, Milojko Spajić, stated on public television RTCG that PayPal is not interested in the Montenegrin market.
Comparing Montenegro with some other countries where PayPal services are available, it is funny to hear that Montenegro does not meet the conditions.
We have heard from the government and Information ministers for years that they will introduce PayPal. Even though almost all conditions have been met, I believe it is not in the banks' interest to enter our market as a payment option.
You can NOT receive money, but you can send it. Smart ha? PayPal is available in more than 200 countries and supports 25 currencies. It is entirely questionable that Montenegro is not on this list (it is, but it is just fancy-listed for showcase).
This is just a sample list of countries that can receive and send money (Montenegro is just listed for comparison) with worse GDPR per capita than Montenegro. I will not compare the stability, criminal, and justice systems because we have accepted EU laws.
| Country | GDP (2023) in EUR |
|---|---|
| Montenegro | 19,020 |
| Argentina | 12,908 |
| Botswana | 7,042 |
| Chile | 15,499 |
| Costa Rica | 15,102 |
| El Salvador | 4,929 |
| Guatemala | 4,220 |
This unequivocal statement from Prime Minister Milojko Spajić illuminates a perplexing situation that has long baffled consumers and businesses in Montenegro.
The absence of PayPal, a global leader in online payment solutions, from the Montenegrin market is not merely an oversight but a deliberate decision by the government, possibly influenced by the local banking sector's stance.
Despite repeated affirmations from various government officials over the years promising the introduction of PayPal to facilitate smoother, borderless financial transactions for Montenegrins, progress has stalled.
The implications are profound. They affect not only the convenience of international transactions for individuals and businesses but also the broader economic landscape, potentially stifling the growth of e-commerce and digital entrepreneurship in the country.
To ensure a fair and growing economy, we must carefully analyze banks' goals and advocate for market structures that encourage new ideas, allow everyone to participate, and foster economic inclusivity.
The rise of digital transactions has fundamentally transformed global commerce. Businesses can now reach customers internationally with greater ease, bypassing geographical limitations.
Montenegro, known for its stunning landscapes and burgeoning tourism, is a prime example of a destination that could significantly benefit from digital commerce.
However, a notable gap in this financial ecosystem poses a significant challenge to the nation's digital economy: the absence of PayPal.
It is more than just an inconvenience; it's a critical shortfall that stifles the growth potential of Montenegrin businesses and entrepreneurs, especially in the tourism sector.
Having PayPal as a payment system for online bookings is crucial for tapping into Montenegro's full potential as a tourist destination, facilitating easy and secure transactions for international visitors.
Without PayPal, Montenegro's online businesses face a substantial handicap. This makes it difficult for them to compete in the global e-commerce market and limits their ability to leverage internet marketing strategies effectively.
PayPal's global reach and widely accepted trust make it a preferred payment method for international transactions. It serves as a payment processor and a mark of legitimacy and security for online businesses.
The absence of such a service limits these businesses' operational capacity and significantly diminishes their appeal to the international market.
The repercussions of this absence ripple through the economy. First, it directly impacts entrepreneurs, small businesses, and freelancers. These entities often rely on global platforms to sell their products or services. Integration into a globally recognized payment system like PayPal is necessary for them to explore other, usually less efficient and more costly, payment channels.
Furthermore, the situation indirectly stifles innovation. A vibrant digital economy thrives on ease of transaction. For start-ups and tech innovators in Montenegro, the extra hurdle in financial transactions can deter domestic and international investment, limiting the country's potential as an emerging tech hub.
While acknowledging the void left by PayPal, it's also essential to recognize that the solution does not exclusively reside with one service. The digital financial landscape is evolving, with alternatives like Stripe (not available in Montenegro too), Skrill, and other systems emerging.
However, integrating PayPal is critical to holistic inclusion in the digital market. It represents more than just another payment option—it's a gateway to many opportunities for growth, innovation, and global connectivity.
MoneyGram: P2P payments. A secure and fast international money transfer. MoneyGram, a global leader in cross-border payments, offers a reliable alternative for sending funds to many countries.
Xoom: Operated by PayPal, Xoom extends the functionality of traditional money transfer services to allow for bill payments and mobile reloads, in addition to fast transfers to overseas bank accounts, making it a seamless alternative for global payments.
RIA: Specializing in money transfers, RIA provides a highly reliable and cost-effective service. It reaches over 160 countries with an extensive network of agent locations, ideal for those preferring in-person transactions alongside digital services.
Skrill: A widely used and trusted digital wallet service, Skrill offers easy and secure online money transfers to over 40 currencies, with low transaction fees and competitive exchange rates.
Cryptocurrencies: Fueled by blockchain technology, cryptocurrencies offer a faster and more independent way to send money internationally compared to traditional methods. However, cryptocurrencies are still not widely accepted in Montenegro.
For Montenegro, attracting PayPal should be more than a wish list item; it should be a strategic priority. The government and financial regulators need to engage in dialogue with PayPal and similar entities to address whatever hurdles currently prevent their operation within the country.
Simultaneously, fostering a regulatory environment that attracts such digital finance giants could catalyze the growth of the digital economy, encouraging both local entrepreneurs and international investors.
In conclusion, PayPal's absence in Montenegro impedes the nation's digital economic aspirations. While it is not the sole pathway to digital financial prosperity, its presence—or lack thereof—is emblematic of the broader challenges and opportunities facing Montenegro in the digital age.
Bridging this gap is not just about facilitating smoother transactions; it's about unlocking a future of limitless economic possibilities on the global stage.
PS: I've emailed the Prime Minister with this link regarding this occasion and fairness to clarify his statement. I will be more than willing to hear his side of the story and publish it here.
PS2:
Here is a government link introducing PP on Jun 18, 2014. "PayPal in Montenegro starting today"
Here's another one: "Srzentić: Ohrabrujuće poruke da će pregovori sa PayPalom biti nastavljeni"
Published on 9. May 2024.
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