First National Bank (FNB) has confirmed it is in “discussions” on the back of rumours that the big four bank is set to launch PayPal locally in April.
On Sunday, the Twitter world was buzzing with talk that the bank would bring in the US-based online payments solution later this year. But these rumours were met by a wall of silence from FNB.
Subsequently, Virginia Magapatona, head of corporate communications at FNB, says the bank is “in discussions with various parties and unfortunately can not comment further at this stage”.
The leak on Twitter seems to have come from someone who claims to be a supplier for the project, who Tweeted: “PayPal is launching in SA in April through FNB.”
An FNB executive confirmed the news through Twitter, saying: “Can anyone say 'cat out of bag'?”, and “It's true - but I wasn't going to put a public launch date on it.”
Due to the nature of local banking laws, PayPal can only operate in SA if it either applies for a banking licence, or joins forces with a local bank. Its presence in SA would allow locals to receive money from offshore legally, without breaking foreign exchange rules.
The ability to sell goods overseas, or easily work as freelancers for foreign companies, without requiring a credit card merchant account, has long been a desire of individuals and small start-ups in SA.
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Tweets trump FNB
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