Google App Payments Problem is Fixed: IT Ministry

Google Payment resolved; IT Ministry instruct SBP postpone DCB policy.

The Federal Minister Syed Amin Ul Haque’s suggestion to develop an efficient procedure and make payments against Google App services was accepted, according to a statement from the IT ministry.

Generally speaking, the DCB is a form of online mobile payment that enables customers to make purchases by charging funds to their mobile phone carrier account.

After the agreement, payments will be sent to Google according to schedule, according to Haque, who also said that all of its application services will continue to be available.

The federal minister added that the SBP has been instructed to put off for a month the implementation of its DCB policy.

The announcement follows widespread reports that certain payments to Google have been halted and that Pakistani consumers will no longer have access to Play Store services as of December 1.

The SBP refuted the reports, stating that it has removed banks and telcos from its list of approved parties for such transfers in light of “the violation of foreign exchange regulations.”

“During recent off-site reviews, it was discovered that telcos were remitting the majority of the funds for video games, entertainment content, etc., purchased by their customers using airtime, under Direct Carrier Billing (DCB),” the SBP said in a statement on Saturday. “In addition to using the mechanism to remit funds for IT-related services for their own use.

According to the SBP

Telco were letting their consumers buy these products using airtime and then sending money outside to depict those transactions as payments for IT-related services.

As a result, the telco effectively served as payment aggregators or mediators by making it easier for their users to purchase services. Therefore, the SBP cancelled the designation of banks for telecommunications for violating foreign exchange restrictions

However, telecoms have been instructed to resubmit their requests through their banks in order to support their legal IT-related payments.

According to the statement, if an organization, including a telco, wants to act as an intermediary or payment aggregator and the arrangement involves the outflow of foreign currency, the organization must separately contact the central bank through its bank to request special permission to offer these services.

In the meantime, telecom operators have been given a month to implement payment procedures, according to a statement from the IT and Telecom minister on Thursday.

The Ministry of IT, Finance, and the SBP would develop a combined action plan for the future during this time.

“A letter was addressed to Finance Minister Ishaq Dar to make the payments and set a time frame on the request of the telecom providers for assistance,” added Haque.

The minister also thanked Tariq Bajwa, the special assistant to the prime minister, and Finance Minister Ishaq Dar for their prompt action on the matter.

SBP spokesperson Abid Qamar had earlier told Business Recorder that the central bank is still in contact with the sector over this problem and that a solution would be found.