PayPal is the world’s biggest e-commerce enable, used by millions of businesses and individuals worldwide to send and receive funds easily via the web.
Due to restrictions by South Africa's Reserve Bank, PayPal has not been allowed to operate in South Africa without a banking licence or without joining forces with a local bank. South Africans may pay using PayPal, but may not receive funds.
The South African internet community is buzzing at the moment after rumours leaked on Twitter that FNB will be that joining force and that South Africans will finally be able to receive money via PayPal in April 2010.
Neither FNB nor PayPal have released official statements, but FNB have indicated that they intend to soon. Some have speculated that it is a viral marketing ploy, where FNB have created hype to build their brand.
If the rumours are true, however, many doors will soon be opening for South African businesses, entrepreneurs and even individuals in that doing business with others overseas will become a lot easier. One concern is that partnering with only one bank would still leave barriers. It would also create big competition for some of South Africa’s existing payment gateways and the demand for their services may become far more specialised.
