Several breakthroughs in the e-commerce business have been made through the use of digital payment systems, thanks to the advent of technology and its rapid growth. PayPal, like other payment service providers and platforms such as Apple Pay, Google Pay, Venmo, and others, allows you to send money digitally anywhere on the globe. Let’s check out Does PayPal work in South Africa?
Fortunately, South Africa is one of the African countries where PayPal operates. However, because PayPal does not accept payments in South African Rand, using PayPal in South Africa is a little more tricky. Furthermore, you are not permitted to keep a foreign currency for more than 30 days under South African Exchange Regulations. This implies you must withdraw funds from your PayPal account into your local bank within 30 days after receiving them. An in-depth description of Does PayPal Work In South Africa, how PayPal works in South Africa, and how to use PayPal to send and receive payments is provided below.
PayPal in South Africa
PayPal works differently in different countries, but all countries require you to have a PayPal account to use its services. This is also the case in South Africa. To get started with PayPal, take the following steps:
- Create a PayPal account in South Africa
- Verify your PayPal account
- Add your credit card to PayPal
- Link your PayPal account to your bank
These are explained below.
Creating a South African PayPal account
The process of creating a PayPal account is the same everywhere. The country/region makes it different.
- Go to www.paypal.com/za/home to create an account.
- Click on the signup button.
- Choose the type of account you want to create -a personal or business account
- Enter your country/region ( South Africa) and your phone number.
- Fill in any other information that is requested
- Finally, click “create an account” after you have accepted the terms and agreement.
Your account is now created, but this requires verification
PayPal Account Verification
Verifying your PayPal account provides its authenticity and allows you to use all of its features. To verify your account, you must provide PayPal with certain documents known as FICA (Financial Intelligence Centre Act) documents. These documents are designed to prevent financial crime and tax avoidance. They include
- Copy of the National Identity Card and passport for foreign citizens.
- Proof of Address such as utility bill, bank statement with an address.
- A copy of the South African Revenue Services (SARS) document confirming your income tax number.
- A copy of your bank statement that confirms your banking details.
Adding your Credit Card to PayPal
Adding your credit card to PayPal completes the verification process. To add your credit card,
- Log in to your PayPal account
- Select “Add/Edit credit card.”
- Fill in the necessary information, such as your name and card details.
- After completing this, PayPal will charge you a small fee to verify your account, which will be refunded later
- After adding your card details, you click on “confirm card.”
- Request for your code.
- Finally, you click “done,” and your account will be verified.
Linking your PayPal Account to your Bank
You must link your PayPal account to your local bank in addition to completing other verification requirements because it allows you to withdraw money from your PayPal account. This withdrawal, however, is not a simple process if you’re not a First National Bank (FNB) customer. Don’t panic. There’s a solution even without opening an account with FNB.
For non-FNB customers, you have to create an FNB online banking profile on their website, register for FNB’s PayPal banking services, and then link your PayPal account to a non- FNB South African Bank.
One should note that in South Africa, PayPal does not accept the South African Rand as a means of payment. Instead, other currencies like USD or EUR can be used for payment. This means that you can receive foreign currency in your PayPal account, but not Rands. The South African Exchange Regulations do not allow you to hold foreign currency for more than 30 days. You can’t make online purchases with your PayPal account or transfer money paid to you in a foreign currency. To do so, you must first withdraw the funds to your South African account, then convert the foreign currency to Rands using your local currency converter.
Conclusion
PayPal is undoubtedly one of the best and most widely used digital payment platforms in the world. It offers you several benefits, like a safe and seamless transaction; it allows you to buy and also sell globally; it also adds authenticity and credibility to your business. PayPal does work in South Africa.
South Africa is privileged to be one of the African countries that enjoy the full benefits of PayPal services. Despite certain limitations, it is an improvement over several other African countries that have limited or no access to PayPal services.
Frequently Asked Questions
- Can I make withdrawals with my local bank?
Yes, you can withdraw money from your PayPal account to your bank accounts such as Nedbank and other major banks, provided you link your PayPal account to your bank and also open an FNB online banking profile and register for their online PayPal services as mentioned above. The money is subsequently transferred to your local bank by FNB.
- How do I receive money into my PayPal account?
Any person who wants to send you money must use the email address you used to create your PayPal account. PayPal notifies you when you’ve received money from a person. Remember, in South Africa, you have 30 days to withdraw funds from your PayPal account, so you must do it before that period expires.
- Does PayPal charge a fee when I make transactions?
PayPal charges you 2.5-3.8% of the amount paid into your account(plus a $0.30 flat fee) when you receive money. It also charges a currency conversion fee of 2.5%, which FNB fixes. FNB then charges 0.81%-1.51% for withdrawals
