Initially the news that Paypal launched in South Africa got me all excited since its about friggin time we get with the programme, but i’ve been looking into it (albeit briefly) and its starting to look like a joke already.
For those of you who are computer challenged and don’t know what PayPal is, let me school you quick:
“PayPal is an e-commerce business allowing payments and money transfers to be made through the Internet. PayPal serves as an electronic alternative to traditional paper methods such as cheques and money orders.” [Wiki]
Now PayPal has finally entered South Africa through First National Bank(FNB), and right there is bullsh*t problem number 1.
- You MUST have an FNB account…(whatever..i’m not opening another bank account).
- Since PayPal does not yet recognise the Rand as a currency you will be dealing in US Dollars and of course FNB will be providing a foreign exchange quote when topping up your PayPal account.
Then there are these two facts noted by Chris M on iMod:
- “South Africans will not be getting the full Paypal.com experience. We can send and receive money but will not be able to use the buy-now buttons in South African Rands. This means that you can’t use Paypal.com on your website that focuses on a South African market.
- FNB will be adding 1.5% onto the transaction value. This, coupled with Paypal.com’s 3.4% + R2.10 per transaction, takes us to almost 5% – which means that one of Paypal’s most attractive features – the low transaction fee – is negated for South Africans.”
Chris knows what he’s talking about so i suggest you visit iMod to keep up with the latest info HERE.
So, as much as “Yay, we have Paypal in SA” sounds awesome..it seems like we are still getting shafted…for now at least.
What do you think?