South Africa Gets PayPal
After lengthy speculation following the hint first leaked on Twitter some weeks ago, (see our article, PayPal Coming To SA?), the wait has finally ended. Today, First National Bank (FNB) has confirmed that it’s users will have access to PayPal, an internationally utilised online payment system, as part of their internet banking package.
PayPal is a widely used secure payment system which allows users to send and receive money to and from other PayPal users, in any country which supports the system. Until now, foreign currency transaction concerns have led the South African Reserve Bank to refuse to support PayPal, which is billed as a safe and easy way to pay, and get paid, online.
How To Get PayPal
According to the announcement, anybody in South Africa who wants to make use of a South African PayPal account will need an FNB account, and access to FNB’s internet banking service. Users will also need to get a registered South African PayPal account.
There will be a short account-linking process to comply with the South African Reserve Bank’s requirements that all international transactions are reported, after which local users will be able to access, and top up, their PayPal accounts via the FNB online banking service.
Dollars Only
Chris Savides, eBucks Innovation Manager, who played an important part in brokering the deal between FNB and PayPal, explains that for the foreseeable future, South African users will only be able to deal with their account in US Dollars. As a result, FNB have built a real-time foreign exchange quote into its service, which will be active when topping up your PayPal account.
Charges And Service Fees
FNB added that there will be a 1.5% commission charged on any amount deposited into a PayPal account, but no other fee’s, other than standard internet banking charges, and PayPal’s own commission, will apply.
Money deposited or transferred to top up a users FNB account should reflect in their PayPal account between 24 and 72 hours after the deposit.
Existing Accounts
According to Oded Zehavi, the regional director of PayPal for South Africa and Israel, local users who already hoild an international PayPal account will need to open new South African accounts in order to access FNB’s service.
He also confirmed that, at present, FNB holds an exclusive agreement with PayPal to offer the service in South Africa, but would not reveal the terms of the agreement, or for how long the exclusivity would last.
A Big Step For South African Internet
According to the statement, FNB and PayPal have been working together for two years to bring PayPal to South Africa, and there are hopes that this could be a major step toward bringing PayPal to the rest of Africa.
The Net Age Reaction
It should go without saying that we’re thrilled that this secure, easy to use online payment system has finally debuted in South Africa. It has, in our opinion, been far too long in the coming.
We’ll be updating our systems to integrate support for PayPal payment in all our clients sites as soon as possible, and have high hopes for the opportunity this will create for South African online entrepreneurs.
