PayPal, the granddaddy of online payment systems, has had a checkered track record in South Africa since it partnered with First National Bank (FNB) and is probably the best demonstration of the constraints placed on these innovations by the country’s banking system.

PayPal’s value as an online payment and money transfer service has been hampered somewhat by regulations requiring that it have a local banking licence, or partner with a local bank. And although the terms of use have been adapted since it was first introduced three years ago to enable non-FNB customers to receive funds into their bank accounts, this process is still far less simple than it could be.