One and a half years ago FNB started offering PayPal account users the ability to top up and withdraw PayPal funds from their FNB accounts, now FNB is opening up its PayPal withdrawal service to any user with a South African bank account.

Receiving funds and withdrawing these funds into a South African bank account was previously offered exclusively to FNB banking customers through their online banking service, and with the new PayPal withdrawal service non FNB customers will also be able to take advantage of PayPal withdrawals no matter where they bank in South Africa.

PayPal account holders from other South African banks will now be able to register their bank account on the FNB site, and then link their verified PayPal account with their bank account through the FNB internet banking portal.

Non FNB customers that make use of the PayPal withdrawal service will not incur any addition charges, and will have exactly the same service as FNB customers but only without the TopUp functionality.

To be able to receive and withdraw money from PayPal you will need a verified PayPal account, a South African bank account, and you need to register on FNB to make use of the PayPal withdrawal service.

This is just another great innovation from FNB showing that they don’t just want to offer their own customers with great service but are willing to extend it to other banks’ customers and allow entrepreneurs in South Africa to be able to make money online in any country no matter where they bank.

It’s no secret that FNB, First National Bank, is at the forefront of innovation at banking in South Africa, and actions are pointing at another first for South African banking from them.

FNB was the first bank that embraced social media, and since then has seen great success with its twitter consultant account, RBJacobs (FNB Guy), that helps FNB customers with quick solutions to problems they are experiencing as well as providing them with advice when they need it.

The last couple of weeks allot of FNB customers started asking about dedicated smartphone apps for the internet banking service, even though FNB gives customers access to mobile banking through their fnb.mobi site and through a USSD service, the company seems to have listened to their customers’ request and yesterday on twitter started asking around at what mobile platforms users would like apps for.

Shortly after users responded, FNB changed their profile picture by adding Apple, Android and BlackBerry logos to it, making it even more obvious that they will be launching smartphone apps. The FNB twitter account also mentioned that they will be announcing something today and questions answered by the account hinted that it may relate to dedicated smartphone apps for internet banking. This morning RBJacobs confirmed that today today they will be talking about the FNB App launch, confirming all the rumours.

Would you make use of a dedicated FNB smartphone app to do you internet banking? If so what platform would you prefer?

For long now the fact that FNB is bringing PayPal to South Africa has been on everybody’s lips with even some leaked screenshots surfacing on the integration, and today FNB officially launched PayPal in South Africa.

The PayPal South Africa launch comes after South Africans has been without the functionality to receive funds through PayPal, we could only use it to send funds. The news of FNB launching PayPal in South Africa has been welcomed by all entrepreneurs in South Africa as this now allows us to move into a more international market without the hassle of receiving funds through wire transfers from international customers.

First National Bank (FNB) customers in South Africa can now sell to PayPal’s global customer base of more than 81 million active accounts in 190 markets around the world and move the proceeds to their FNB accounts. This new service allows customers to top up and withdraw funds to their qualifying FNB accounts from their PayPal accounts.

“We are especially pleased to make this announcement on the eve of the 2010 FIFA World Cup, as South Africans will be able to join the global eCommerce marketplace. Our agreement with PayPal also enables international businesses and individuals to transact with South African service providers via a secure and convenient payment gateway”, says Michael Jordaan, FNB’s Chief Executive Officer.

“The exclusive top up and withdraw service with PayPal allows South Africans to make payments and receive money internationally without sharing their financial or personal information,” adds Jordaan.

FNB Customers can simply open a PayPal account and link it to a qualified FNB account and receive PayPal payments in 21 different currencies. FNB will convert the currency to South African Rand, when the money is transferred into their accounts.

This solution enables customers to top up their PayPal accounts anytime they want to send money or shop online with PayPal’s global base of merchants.

“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 the continent’s largest economy, we’re optimistic about the future of eCommerce in this market and look forward to working with FNB on the opportunities ahead,” says Zehayi.

“The launch of PayPal sees FNB take another step forward as South Africa’s most innovative financial institution. It responds directly to our ‘how can we help you?’ brand promise,” concludes Jordaan.

The PayPal service will be offered in partnership with FNB and has received approval from the Exchange Control Department of the South African Reserve Bank.

Below is a screenshot taken by a FNB client which shows that PayPal has been integrated into the FNB online banking, although the screenshot shows that PayPal has been integrated some users are still reporting that they do not have the functionality in their FNB online banking profile yet.

The screenshot comes after only a few weeks ago when FNB announced that they are partnering with PayPal to bring PayPal to South Africa. Could this be the real deal or do you think this screenshot is a fake?

FNB is doing a good job at bringing PayPal to South Africa, but the only drawback I have with this is that now if you want to use PayPal in South Africa you are forced to open up a FNB account. I guess its a good way to get some customers, but I would have prefered to be able to use PayPal with my current Bank, I see no need to open up another account with a different bank just to use PayPal.

Everybody has been going on about how they want PayPal in South Africa, now that it is here do you think people will use it as much as they wanted it?

Buying and selling online from South Africa has become sort of a risk in this day and age, specially if you want to buy from places like e-bay. This will hopefully not be the case for long anymore as PayPal is currently in talks with FNB and the South African Reserve Bank.

What is PayPal you ask? PayPal is the safer, easier way to pay and get paid online. The service allows anyone to pay in any way they prefer, including through credit cards, bank accounts, buyer credit or account balances, without sharing financial information. Gone are the days of entering your credit card details to buy something online, you will just buy with your PayPal account and PayPal will ensure that the transaction goes smooth.

About two weeks back news has gone viral on social networking site Twitter where it was divulged that FNB is currently in talks with PayPal to allow transactions from South Africa. Later on head of corporate communications at FNB released an official statement that First National Bank is indeed in discussions with PayPal and the South African Reserve Bank.

Upon entering the FNB website users are now also greeted with a pop-up window with the statement that it is confirmed that FNB is in talks with PayPal and that further information will be released in due course.

This is a really exciting announcement by PayPal and FNB as the introduction of PayPal in South Africa will open up so many new potential opportunities and bring a huge influx of cash into South Africa through online purchases.

What do you think? Will you be using PayPal when it is confirmed that it will be available in South Africa?