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You don’t need Paypal to succeed in life. « Free Tips DOT COZA

You don’t need Paypal to succeed in life.


Posted on 16th March 2010 by Tony in Business Advice

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There has been a lot of speculation in South Africa lately about the (final) arrival of Paypal. For many years now South Africans could use paypal to SEND money, but were not able to use paypal to receive money. There were many reasons for this, most notably, the fact that South Africa still uses archaic exchange regulations and has a very tight-fisted Reserve Bank and Monetary Policy.

That’s more than enough material for another debate, but today I want to discuss my views on Paypal.

Many of the people I talk to say that they can’t make a success using the Internet because there is no access to Paypal for South Africans. I quickly point out that I very successfully use 2checkout.com which is perfectly legal (even for South Africans) and have seamlessly received money into my South African bank account through a basic SWIFT transfer. 2checkout.com also allows people to pay via their paypal accounts.

So why are people still harping on about paypal.com? I think that it’s simply an excuse… “I can’t make a success because…” After all the pain and integration and time it takes for FNB to set up paypal.com in South Africa I can see another string of excuses coming along about why the banks/reserve bank/government/universe is preventing people from succeeding.

You have to make the decision now: Are you going to play victim or not?


  1. Chris M says:

    I guess I look at this in 2 points:

    1. If you can’t make a living without PayPal, then you’re doing something horribly wrong.
    2. PayPal does give a bit of a leading edge when it comes to accepting payments easily from anyone online across the world, compared to current systems that are in place.

    All in all, it’s not essential, but it’s incredibly useful.

    That’s my 10c

    16th March 2010 at 2:42 pm

  2. Karen Lotter says:

    Well Tony maybe I should explain…

    I’m a writer. Most writing work only pays via PayPal. And when you do maybe six or seven jobs a month for $300 or $400 for different people you will understand what a pain swift transfers are. Because I sell a service, not a product, I can hardly use 2checkout.

    I have been writing for over three years for a Canadian website that only pays via PayPal and having my money sent to a friend in the USA who keeps it for me until there is a big enough lump sum to warrant the amount I lose – from both sides for a swift transfer.

    I have been offered a number of jobs over the years that I’ve had to turn down because of the PayPal issue, so you see, for me it will mean that I can now get more work on the international market.

    16th March 2010 at 3:02 pm

  3. Ross says:

    I could also walk to the shop / work / wherever but I choose to have a car because it’s a schlep doing so.

    As Karen points out, some clients have Paypal set as a requirement… so you lose work over some archaic, tight fisted reserve bank monetary policies.

    I for one am sick of waiting a week for payment from a UK client. It’s pathetic in this day and age to have to do so.

    16th March 2010 at 4:35 pm

  4. Tony says:

    Karen – I suppose it does depend how payments are made. For example, I would set up a website where people can “order” articles and link it to 2checkout.com – this would be a product (customised article) instead of a service. This would still allow people to pay you via paypal through the 2checkout portal.

    I do understand that it can be difficult where payment is “automated” and they want you to provide your paypal address. However, I still firmly believe there are more than enough opportunities for writers (especially) who are willing to pay through 2checkout or the likes.

    My point, however, is this: Over the last 5 years I have shown people how to create money online. I myself have built up 9 very profitable websites in South Africa – none of which uses paypal. Too many people think that having paypal in SA will take away the problems.

    16th March 2010 at 5:39 pm

  5. Tony says:

    Ross, thank you for a great comment.

    As I said in my post – my opinions of the Reserve Bank’s policies is the scope of a thesis. We cannot, however, deny the fact that the policies are exactly what saved our bacon during the recession in 2009. South Africa’s mild bump-in-the-road was nothing compared to what people experienced in the US and UK.

    Paypal is a nice-to-have … it gives your website credibility and makes people feel a little more comfortable dealing with you – especially because of paypal’s $2000 protection programme for consumers.

    But I reserve judgement on how “easy” it’s going to be to access your paypal money through the FNB portal. A quick call to a friend of mine confirms that even with paypal in the UK you still wait 4-5 working days for the money to actually clear into your UK bank account. The same time it takes for a Swift Transfer to SA.

    FNB will still require checks-and-balances to make sure there are no forex loopholes, etc. Nor do I think FNB will provide us with the 1.9% transaction fee currently levied with Paypal Users.

    16th March 2010 at 5:46 pm

  6. Mike says:

    I don’t think it is so much that you can’t make money without Paypal, but how much easier and more convenient it will be with Paypal.

    I use Paypal on a number of websites, and think it is a great service. True it can take 4-5 business days to transfer funds to your bank account, but usually this is more like 2-3 days. Plus you are not paying fees on this transfer if the balance is above $150.

    It’s also about giving businesses and consumers a choice. They shouldn’t be stuck having to use one particular service. Free it up to see the benefits it provides. There must be heaps of people in South Africa in a similar situation to Karen. This can surely only be beneficial in bringing more money into SA.

    I think it will be all positive when Paypal comes in – as long as they don’t try what they did with Ebay in Australia.

    But, sorry back to the topic, I agree – you don’t need Paypal to succeed, and if you can’t have it make the most of what you can use and go hard while others sit around moaning and complaining.

    16th March 2010 at 12:02 am

  7. Tholithemba says:

    Well after reading the comments i would say not using paypal is a HUGE disadvantage to RSA business owners.

    16th March 2010 at 8:39 am

  8. Tony says:

    Thanks for the comment, Tholithemba … I agree with you – paypal has huge advantages for us South Africans. My point, however, hinges on the people who say it’s the “only” way to get paid. It isn’t. And I get frustrated by people who limit themselves and their earning potential.

    16th March 2010 at 9:58 am

  9. Michael says:

    We’ve learned the hard way no PayPal for us there are better much more viable options out there I can offer anyone here more information, will take you about 2/3 days to set up and you get your own little plastic card to spend all your money on, it’s a local payment from any UK client or other international clients – and they can still pay you using their paypal account.

    FNB will be charging a further 1.5% on top of the PayPal charges absolutely ursurious I venture! And the best is you are forced to bank with FNB, how does that sit with you?? Where’s the freedom of choice?? I could go on but the Paypal fanboyz will not want hear it

    16th March 2010 at 9:01 pm

  10. Tony says:

    I’m assuming you’re talking about 2checkout.com because they offer the same service. Since the FNB launch what disappoints me most about SA version of paypal.com is that we are unable to put ZAR figures on our websites.

    16th March 2010 at 8:24 pm

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