There is a campaign, which ironically started in the United States, but which has now spread all over the world, to have PayPal, the internet payment processing company, extend its services to Palestine. No matter what happens, this proposal is fraught with landmines.
PayPal offers its services to over 200 countries, in at least 25 currencies. So its scope is pretty much universal, with the exception of a few areas. There ia a rogue’s gallery of countries which are not connected to PayPal, but only a few. Many of those are pretty much totalitarian. The rest are prohibited because of concerns that payments would be either fraudulent or used to fund illegal or terrorist causes.
This reluctance to connect PayPal to Palestine has been a source of major criticism from around the world, especially since PayPal does operate in nearby adjacent Jewish communities. It is preventing a large community of well-educated IT professionals in the contested areas and Gaza from getting employment — especially needed for those stuck on the wrong side of the security fence, where unemployment is rampant.
The American Group, A4VPE (Americans for a Vibrant Palestinian Economy), has been running a major campaign to bring PayPal to the contested areas. In August of 2016, they sent an open letter to the President of PayPal, Mr. Dan Shulman.
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. — A4VPE
Technically, there is no reason that PayPal could not be extended to the Palestinian areas, if technology were the only concern as Tech Crunch noted:
PayPal currently does not work for Palestinians in the West Bank or Gaza, but does work for Israelis living in settlements in the West Bank, which are illegal by international law… [H]ow an Internet platform could work in some areas of a country but not in another — where the areas in question are in some cases literally meters apart — is puzzling to say the least. — Tech Crunch (emphasis mine)