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10 Things You Must Know About PayPal, Papua New Guinea And Airline Tickets

Yesterday, many Papua New Guineans welcomed the news that our national carrier Air Niugini now accepts PayPal and POLi to pay for airfares.  There were, however, a handful of Papua New Guineans who raised an

Yesterday, many Papua New Guineans welcomed the news that our national carrier Air Niugini now accepts PayPal and POLi to pay for airfares.  There were, however, a handful of Papua New Guineans who raised an important issue and that was whether Papua New Guinea based PayPal account holders can now receive money through their PayPal account.

 

We answer that and nine other key findings you must know about PayPal, Papua New Guinea and the situation in using this method of payment when purchasing airline tickets.

 

  1. Can you now receive money with your PayPal account?

For Papua New Guinea PayPal account holders, the short answer is – No.

 

PayPal is a commonly used and trusted payment method.  Most tech savvy Papua New Guineans will know that one of the problems in using your PayPal account is that PayPal does not accept (at least to this date) PNG account holders to receive money.  You can pay for goods and services using PayPal but sadly for PNG account holders you can’t receive money. This is a problem for those who want to use PayPal on their e-Commerce sites.  You can click here to confirm.

  1. You can only use PayPal with a currency accepted by PayPal

That’s right.

 

For the reason given above, if you are to pay for goods and services using PayPal, the currency will be in Australia or US Dollars or any other currency accepted by PayPal.  PGK is not one of them.  If the source of payment on your PayPal account is, say a BSP Visa Card account, you need to be aware of the exchange rates as you will be charged in the foreign currency and not PGK.

  1. So, will I be charged in, say Australian Dollars, if I purchase tickets on Air Niugini?

Air Niugini made it clear in its media release that PayPal and POLi are not available for flights from PNG.   That is, if you want to book a flight from say Port Moresby to Sydney, you can’t use PayPal.  Why?  Because airfares listed on Air Niugini for this route are in PGK as mentioned above PayPal does not allow payments of goods and services in PGK.

  1. So, you can’t use PayPal for booking domestic flights?

Correct.  The same reason in 3 above where the currency is in PGK.

  1. When can you use PayPal?

In so far as Air Niugini is concerned and to explain it in simple terms, you can only use PayPal on Air Niugini for flights where the base currency is AUD or USD.  As an example, if you were to book a flight from Sydney (or any other Australian city where PX flies) to Port Moresby you can use your PayPal account because those airfares listed on Air Niugini’s booking site are in AUD.

  1. What about booking a return ticket from POM/BNE and BNE/POM

Based on our findings, it seems you would have to make two separate bookings if you were to use PayPal as a mode of payment on the BNE/POM flight.  Air Niugini and most other ecommerce sites give you the option to select only one method of payment.  You can’t pay airfares with say PayPal AND Credit in the one transaction.  You either choose PayPal OR Credit Card (or other source).

  1. How do I then book a return ticket if I were to use my PayPal account?

You will need to go through the booking process twice. The first booking, POM/BNE, you will need to use a credit/debit card and for the return flight from BNE/POM you will have to go through the same booking process with the option of using PayPal.

  1. Is there a fee PayPal charges for purchasing goods/services like airfares?

PayPal presently does not charge you for paying for goods/services. For receiving funds through PayPal, yes, PayPal has a fee structure.

  1. So how does Air Niugini use PayPal if it’s based in PNG?

We’re not privy to the specific system used by Air Niugini but having used PayPal in our own and client’s ecommerce sites we will give one of our client’s example.  Our client is a PNG business.  It has a merchant PayPal account with an address in Australia.  This enables it to receive money through PayPal which in turn are remitted to an Australian account and from that Australian account it can further remit funds to its PNG account.  A bit of a tardy process but that’s the way it happens and since everything is done online it’s not really a difficult process – only a few clicks of the mouse!

  1. Why can’t PayPal accept PGK as an approved currency?

It’s a difficult one to answer since PayPal has never come clear on this but certainly one possibility is that it might be a regulatory issue.  Bank of PNG is in charge of money and banking related matters in the country so one would expect BPNG to give the nod for PayPal to accept PGK.  But then again, it’s only a wild guess.

 

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