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Paypal deal with FNB in SA

2010-03-25 12:38

Johannesburg - Listed retail bank FNB and global e-commerce group PayPal have entered into an agreement, the parties said on Thursday.

The agreement would enable FNB customers in SA to sell to PayPal's global customer base of more than 81 million active accounts in 190 markets around the world - and move the proceeds to their FNB accounts, they added in a joint statement.

"This new service allows customers to top up and withdraw funds to their qualifying FNB accounts from their PayPal accounts," the statement said.

"We are especially pleased to make this announcement on the eve of the 2010 FIFA World Cup, as South Africans will be able to join the global e-Commerce marketplace."

The agreement with PayPal also enabled international businesses and individuals to transact with South African service providers via a secure and convenient payment service, Michael Jordaan, FNB's Chief Executive Officer said.

Financial infrastructure

"The exclusive top up and withdraw service with PayPal allows South Africans to make payments and receive money internationally without sharing their financial or personal information," he added.

He said FNB customers could simply open a PayPal account and link it to a qualified FNB account and receive PayPal payments in 21 different currencies.

"FNB will convert the currency to South African rand when the money is transferred into their accounts.

"This solution enables customers to top up their PayPal accounts anytime they want to send money or shop online with PayPal's global base of merchants."

Oded Zehavi, head of PayPal's business in Israel and South Africa said the solid financial infrastructure in SA and its status as the continent's largest economy, lead to optimism about the future of e-Commerce in this market.

The PayPal service has received approval from the Exchange Control Department of the South African Reserve Bank.

Comments
  • Ghost in the Machine - 2010-03-25 12:50

    Hallelujah! Praise be!

    Nedbank are you listening!

  • Michael - 2010-03-25 12:56

    Whoo-hoo!!!! how can we help you? By getting Paypal! Nice.

  • Q - 2010-03-25 13:07

    What a pity I vowed never to be customer of FNB ever again.

  • Idris Suleman - 2010-03-25 13:19

    So can we now purchase from eBay via PayPal, and how do we pay for the customs duty and freight charges

  • MP Apipila - 2010-03-25 13:22

    The world ha become a global village, i thing this is a great opportunity for FNB customers and for people in african to mange they transfer money via PayPal, FNB do not hesitate to take the lead in this great adventure. I know you will make it and we will be proud of having you in our mind and first saver. do not snooz, go for it!

  • Juan - 2010-03-25 13:25

    CAREFUL NOW!! Knowing the fascist sharks that are SA banks, there will be HEAVY 'admin' and 'service' fees on these accounts. MARK MY WORDS!!!!!!

  • Hendrikus - 2010-03-25 13:28

    Well done FNB! I am so happy to be one of your clients!

  • Vrye Denker - 2010-03-25 13:37

    Juan, I agree. Better keep the money in your Paypal account and use it as another form of currency.

  • James - 2010-03-25 13:55

    @Idris. We have always being able to use PayPal to shop at any eBay auction where the seller accepts PayPal. All you need do is open a PayPal account and link it to your credit card. Basically PayPal acts as a frontend for your credit card so that you do not have to enter your credit card details on teh website. The problem is that you are hit by PayPal's admin fee and your bank's fee for paying in a foreign currency which does increase the cost.

    Basically you cannot just use the current spot rate as the cost of the transaction, that is just the base.

    As for freight and customs, freight costs should be included in your total cost when you purchase the item off eBay, but customs is for your account and will only be levied once SARS gets the package from the seller at OR Tambo and assesses the relevant duties and taxes so that is something you will pay separately when you receive the package.

    The whole point of this is that now SOuth Africans can receive cash into their PayPal account, like we have been able to do for some time, but now we can withdraw that cash by linking our PayPal accounts to an FNB account.

  • Jason - 2010-03-25 14:40

    @Idris Suleman - we have always been able to purchase from overseas using PayPal. The problem was in receiving money because of our exchange control regulations.
    Thank you FNB for taking us one step closer out of the dark ages.

  • Fazil - 2010-03-25 15:26

    What is all the fuss? Simply use your credit card to pay or receive funds. I don't know when will we get less excited about hyped products?

  • Hanno Winterbach - 2010-03-25 15:35

    Awesome, where do we sign...open a FNB account please. Let the e-commerce games begin.

  • Crazy88s - 2010-03-25 16:20

    Apparantly the transaction costs are 3% for PayPal and 1.5% for FNB... 4.5% is a bit steep.

  • Jason - 2010-03-25 17:26

    @Fazil - please enlighten me on how to receive funds via my credit card.

  • Russel - 2010-03-25 18:22

    @Fazil, this is good news for anybody selling stuff online because many many people in the world don't like using credit cards but prefer to pay using paypal. If you don't offer paypal you lose a lot of potential clients. Also - if you do affiliate marketing (marketing other people's products), most companies pay ONLY using Paypal. Until now this has prevented south africans from massive opportunities to be paid for a range of online opportunities that use only paypal. As for me, I'm going to FNB tomorrow to sign up for an account. I don't care about the costs - there will always be bank costs - but the opportunities to earn dollars is worth it!

  • Russel - 2010-03-25 18:22

    @Fazil, this is good news for anybody selling stuff online because many many people in the world don't like using credit cards but prefer to pay using paypal. If you don't offer paypal you lose a lot of potential clients. Also - if you do affiliate marketing (marketing other people's products), most companies pay ONLY using Paypal. Until now this has prevented south africans from massive opportunities to be paid for a range of online opportunities that use only paypal. As for me, I'm going to FNB tomorrow to sign up for an account. I don't care about the costs - there will always be bank costs - but the opportunities to earn dollars is worth it!

  • bob - 2010-03-25 20:59

    With a credit or debit card it was always possible to use paypal, don't quite understand what difference it makes if FNB offers the link. The exchange controls are still in place, and when it comes to forex the FNB team is clueless (was promised by 3 different people from theor Forex dept an overview of the rules, still waiting for it).

  • Mariana - 2010-03-26 11:22

    The greatest news ever now I can sell my goods better to overseas customers thank you

  • Factual - 2010-03-26 14:18

    @bob & Fazil, get your facts straight before you start typing rubbish! South Africans were not allowed to receive funds before this FNB initiative. They were however allowed to transfer (send) funds to other PayPal users. Thank you FNB!

  • Zandile - 2010-03-26 14:33

    true bob, i've been using my credit card and have it linked with paypal or with my cheque card, i've been buying things online all the time. I've never been a victim of fraud. you just have to be smarter with your card and don't go to untrusted unknown retail shops

  • empty purse - 2010-03-26 14:59

    Yeah!, Wow!, Great! .... oh no, just wait a minute, now I remember I don't have any money!!!! Oh heck!, oh bugger!, oh blast!!!

  • blackie - 2010-03-26 15:01

    GOOD NEWS!!!!you don't have to be an fnb client to register for paypal,i'm an absa client and have been using paypal for the past 2years,you have to own a credit card though,and the shipping is automatically calculated once you reach the end off your shopping online,and it's super fast,they give you a invoice not even a minute later,after purchase and they convert it to rand before you pay,so no nasty shipping surprizes,so you can reject the payment if shipping is to high

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