How Does PayPal Work in South Africa?


PayPal is the world’s most popular payment service, with millions of users and businesses putting their trust in it. It’s a fantastic option for your online shopping and store or businesses to accept payments. Do you know how to use PayPal in South Africa? There are a few details to consider, such as the currencies that can be received and how you can withdraw your funds from PayPal.

Which banks in South Africa accept Paypal?

Your bank account can be linked to PayPal to receive and send payments. Some banks like Standard, NedBank, or ABSA, accept PayPal. You’ll have to adhere to a few rules, and transactions to your South African bank account could take up to one to seven business days to execute the payment. 

Is it possible to transfer funds from Paypal to any South African bank account?

Yes. It is possible. Your bank account can be linked to PayPal like Standard, NedBank, or ABSA through which you can easily transfer the funds or the money to your client. You’ll also be charged a value as a transaction fee for transferring money from PayPal to South African banks (as if PayPal wasn’t already getting a cut of every transaction).

Major restriction of PayPal in South Africa 

The second major restriction is that funds in your own PayPal account cannot be kept. You also won’t be able to make direct online transactions with the funds in your PayPal account. Rather, you must withdraw your PayPal balance to the bank account of South Africa within 30 days.While this may appear inconvenient, PayPal’s use in South Africa is not to be overlooked. PayPal does provide a lot of advantages.

How to use PayPal in South Africa?

Let’s look at how to set up a PayPal account to accept payments in South Africa. You must meet the following requirements to know how to use PayPal in South Africa:

  • Open a PayPal account and verify it with KYC verification.
  • Connect your PayPal account with your bank account in South Africa.
  • Remember to get your money out within 30 days after receiving it.

Transaction Fee

A fixed transaction fee of 2.4% to 3.9%, plus $0.3USD each transaction, is charged by PayPal.

FNB Rules of PayPal in South Africa

PayPal additionally adds a 25% currency conversion fee on top of the current exchange rate. FNB determines the exchange rate. FNB charges 0.8% to 1.51% of the withdrawal fee. The percentage is determined by the amount and volume of transactions in your account’s history.

Linking your PayPal account to your FNB account

You can now link your account to PayPal once you’ve completed the rest of the setup process. Some of the options on the FNB website are hard to discover. A three-step technique is used to link the files.

  • Fill in the information about your FNB and PayPal accounts. 
  • Fill in or confirm your personal information if you are an FNB customer.
  • Authorizing the account to be linked from PayPal. This step will disconnect your FNB account from your PayPal account, requiring you to login in to complete the authorisation.

Conclusion

PayPal isn’t the cheapest option in South Africa, but it has a lot of advantages. Using a world-class payment platform improves the trustworthiness and credibility of your online store. It also allows you to sell to international consumers in their currency, which is a huge benefit or even a requirement.

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