Users have to register a free FNB online banking profile and submit a “Know Your Customer” form, as well as FICA documentation.
Once your information has been validated, FNB said that you will be able to link your nominated bank account to your PayPal account through your FNB online banking profile.
There are no additional fees for making use of the service, FNB said, adding that non-FNB customers will have exactly the same service, except without PayPal TopUp.
This means that non-FNB customers won’t be able to load money onto their PayPal to make payments. According to FNB, most customers link credit cards for payment rather than keeping a positive balance in a PayPal account.
At the time of writing, the e-mail address provided by FNB to which one sends FICA documentation wasn’t working, but customer support representatives indicated that they are working on resolving the issue.
The full press release announcing the launch is below:
First National Bank (FNB) and PayPal today announced that it has extended its FNB PayPal service so that South Africans can withdraw funds from a PayPal account to any South African bank account. All South African banking account holders now have the ability to receive funds from PayPal’s more than 100 million active users in over 190 countries and territories and in 24 currencies. This service was previously exclusive to FNB customers.
“One and a half years after launching our exclusive Top Up and Withdraw services for FNB customers we are pleased to open up the PayPal service for receiving funds to all customers with a South African bank account. They will now be able to withdraw funds from a PayPal account into a qualifying South African bank account regardless of which South African bank that they bank with. FNB is a proud supporter of entrepreneurship in South Africa and PayPal provides entrepreneurs with a safer and easier way to get paid by anyone, anywhere in the world, and in over 24 currencies,” says Chris Savides, FNB’s General Manager for FNB Complementary Online Services.
Over 20,000 FNB-banked merchants and individuals have already signed up for the PayPal service to-date. By opening up the ability for individuals and businesses that do not bank with FNB, it is able to offer the more than 500,000 South Africans with registered PayPal accounts the ability to receive funds through PayPal into their selected bank accounts.
“Although most of the current 500,000 South African PayPal customers use their accounts to buy goods and services from overseas merchants there are several merchants and entrepreneurs who could be using PayPal to grow their business globally and receive payments securely and conveniently with PayPal”, says Savides.
South Africans already making use of PayPal but not banking with FNB have been able to make credit card-based payment transactions and benefit from the added security of transacting online with PayPal by linking their credit card to an authorised PayPal account.
Receiving funds and withdrawing these funds into a South African bank account was previously offered exclusively to FNB banking customers. “The new PayPal withdraw service for non FNB customers is similar to the current service whereby users are required to link their verified South African PayPal account to a South African bank account,” explains Savides. “It is for this reason that customers who want to make use of the PayPal service to receive funds into their nominated bank account are still required to create a free FNB Online Banking profile in order to link the accounts, even if they do not bank with FNB. It facilitates the Know Your Customer (KYC) and reporting requirements of the South African Reserve Bank (SARB) and ensures that all transactions take place within the exchange controls.”
FNB’s agreement with PayPal enables international businesses and individuals to transact with South African service providers via a secure and convenient payment service.
Customers can simply open a PayPal account by visiting www.paypal.co.za and are then required to link it to a qualified South African Bank account by visiting www.fnb.co.za. They will be able to receive payments in 24 different currencies via PayPal and FNB will convert the currency to South African Rand when the money is withdrawn into their South African bank accounts.
Savides adds that the internet has changed the global commerce landscape and encourages South Africans to think about selling their goods and services to people outside of South Africa’s borders. “Anyone has the ability to become a global online retailer. There is a diversity of businesses and individuals receiving payments with PayPal, from taxidermists to tour operators, philanthropists to philately; but it’s not just for small business to charitable donations. One of South Africa’s leading online floral and gifting retailers, NetFlorist.co.za started making use of PayPal after it realised that 30% of its business comes from outside of South Africa’s borders. PayPal is a trusted and safer payment service for people transacting from abroad,” he says.
“FNB and PayPal have a similar focus on innovation, so it makes sense that we would work with FNB to make online payments even easier for merchants and consumers in South Africa,” said Oded Zehavi, head of PayPal’s business in Israel and South Africa.
“With South Africa’s solid financial infrastructure and its status as one of the continent’s largest economies, we have seen great strides in eCommerce in this market. The succeess of FNB and PayPal’s intintal offering will be further bosltered by offering all customers with a South African bank account the a safer way of getting paid online with PayPal,” concludes Zehavi.
“The opening up of the withdraw service from PayPal by FNB sees FNB take another step forward as South Africa’s most innovative financial institution and responds directly to our ‘how can we help you?’ brand promise,” concludes Savides.
The PayPal service is offered in cooperation with FNB and has received approval from the Financial Surveillance Department of the South African Reserve Bank.