Paypal brushes-off request from Palestinian tech firms to access the platform

August 23, 2016

Mr. Daniel H. Schulman

President and CEO

PayPal

2211 North First Street

San Jose, CA 95131

Dear Mr. Schulman,

We are writing to urge you to extend PayPal’s services to Palestinians living in the West Bank and Gaza thereby removing a major limitation on the Palestinian technology sector, one of the only bright spots in the overall economy. More importantly, extending PayPal services would resolve the current discriminatory situation whereby PayPal’s payment portal can be accessed freely by Israeli settlers living illegally (per international humanitarian law) in the West Bank while it remains unavailable to the occupied Palestinian population.

PayPal’s absence is a major obstacle to the growth of Palestine’s tech sector and the overall economy. While other payment portals are available, there is no replacement for the trust and familiarity that PayPal inspires among potential users, particularly those that are unfamiliar with Palestine-based companies. Without access to PayPal, Palestinian entrepreneurs, nonprofits, and others face routine difficulties in receiving payments for business and charitable purposes. Moreover, PayPal’s absence is problematic for the overall Palestinian economy as tech is one of the only sectors with the potential to grow under status quo conditions of the Israeli occupation which severely restricts the internal and cross-border movement of goods and people. Indeed, by entering the Palestinian market, PayPal has the opportunity to make a significant contribution toward alleviating the destabilizing unemployment rates of over 25% in the West Bank and 40% in Gaza.

We have been told that PayPal is concerned about the compliance investments required to enter the Palestinian market. We believe such costs have been greatly overestimated. The U.S. Treasury Department has spent a great deal of time working with the Palestine Monetary Authority to strengthen safeguards against abuse. PayPal currently operates in over 203 countries including places with major problems of corruption and terrorism like Somalia and Yemen. We are confident that Palestine will prove a much easier place to profitably do business than these and other markets that PayPal has already entered.

In addition to business reasons, there are also ethical reasons for PayPal to enter the Palestinian market. PayPal’s decision to launch its service in Israel for Israeli bank customers means that it inadvertently made its services freely available to Jewish settlers living illegally in the occupied West Bank. Palestinians living in close proximity to those settlers do not, however, have access as PayPal doesn’t work with Palestinian banks and Palestinians are unable to establish Israeli bank accounts. We believe a company like PayPal, whose actions in North Carolina reaffirmed its commitment to equal rights, would agree that people living in the same neighborhood ought to have equal rights and access to its services regardless of religion or ethnicity.

We understand that entering a new market can be complex and would be more than happy to work with you, the Palestinian Monetary Authority, and any other necessary officials to pave the way for PayPal’s entry to the Palestinian market.

We very much look forward to hearing from you and working with you to ensure that Palestinian entrepreneurs, nonprofits, and others are free to participate in global commerce. Our point of contact in this matter is Ehsaneh Sadr, 408-306-2559, ehsaneh.i.sadr@gmail.com.

Sincerely,

Gaza Sky Geeks

Partners for Sustainable Development

Jaffa.Net Software

iConnect Technologies

Applied Information Management (AIM)

National Beverage Company

Palestine Tourism and Investment Company

Ibtikar Fund

Americans for a Vibrant Palestinian Economy

Bethlehem Business Incubator

Advanced Technologies for Business

Kenz

BarakaBits

Al Nasher Technical Services

Leaders Organization

Bedejob.com

Netaqe.com

Indiepush

RedCrow Intelligence

Wirez

TechWadi

PinchPoint

Fadfid

Mashvisor

Arabreneur

Baskalet game studio

5qhqh.com

Myndlift

Nudge

Paltel

Arab Palestinian Investment Company (APIC)

Siniora Food Industries Company (Siniora)

Unipal General Trading Company (Unipal)

Medical Supplies and Services Company (MSS)

National Aluminum and Profiles Company (NAPCO)

Arab Palestinian Shopping Centers (BRAVO)

Palestine Automobile Company (PAC)

Sky Advertising, Public Relations, and Events Management Company (Sky)

Arab Leasing Company (ALC)

Arab Palestinian Storage and Cooling Company (APSC)

Peeks

CircleOut

Content Tech Inc.