As anticipated,First National Bank (FNB) and PayPal have signed an exclusive deal whereby South African online merchants can now 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.
The new service allows customers to top up and withdraw funds to their qualifying FNB accounts from their PayPal accounts.
“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," says Michael Jordaan, CEO of FNB. "Our agreement with PayPal also enables international businesses and individuals to transact with South African service providers via a secure and convenient payment service."
“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 adds.
FNB customers can now 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 rands when the money is transferred into their accounts.
Jordaan stresses that the service, which has been under development for some months, is fully compliant with Reserve Bank regulations.
He adds that the agreement with PayPal is exclusive for both parties, but won't dislose how long the exclusivity is for.