Update: FNB released a statement today confirming that they are in discussion with PayPal and the South African Reserve Bank. They are saying nothing else at this point, but have indicated that further details will be released "in due course."

It’s still just a rumour, but it is a good one: eBay is partnering up with FNB to give South African users full access to PayPal come April.

The rumour started on Twitter late Sunday night, but neither company has released an official statement or comment as yet.

Currently we can only make payments from a local accounts using PayPal, but should the rumours of a partnership between eBay and FNB be true, we could start to receive payments to local accounts as well.

The South African Reserve Bank currently blocks the use of PayPal, and other such services, in the country via foreign exchange requirements and licensing regulations. A partnership with a local bank should effectively allow PayPal to side step the Reserve Bank’s licensing requirements however, but pieces of the exchange control laws may still have to be changed.

PayPal comes with the benefits of more secure online trade and allows users to transfer funds online without the need to reveal their credit card details. The fact that it would make it easier for local businesses to deal with international businesses is naturally of huge benefit as well.

You can follow the buzz on Twitter at #PayPalSA.

More coverage:

The Daily Maverick

Fin24

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ITWeb