Easy payment via bank funds trasfer to Paypal account

Paypal Singapore has now come up with a more convenient way for local online shoppers to pay for goods and services bought on the internet.

If you have been using Paypal all this while, you know that in order to use your Paypal account to pay for items that you purchased, either

1) you have to have enough funds in your Paypal account, or

2) you pay through your credit card that is linked to your Paypal account.

The first method is much preferred because you pay with whatever Paypal funds you already have in your Paypal account.  Hence you buy when you can afford it.  You tend to have Paypal funds in your account when other Paypal account holders make payment to your Paypal account, usually because you sold them something.  

The other method is buying on credit, which also chalks up a credit card service charge per transaction.  Paypal account holders use this method when they have insufficient funds in their Paypal accounts.

Now Paypal Singapore allows its account holders to transfer funds from their local bank accounts to their Paypal accounts, so as to pay for their online purchases.  It works a bit like NETS and it’s not on credit, so it’s kinda in-between. 

From now on when you log into your Paypal account, you will see a “top-up” link in the top navigation bar and you just proceed from there.  In a way, this makes it more convenient for online shoppers to make payment. 

Although I welcome this new convenient payment method, I still caution online shoppers to buy things prudently and not be swayed too easily by the easy payment mode.  We are still in an economic recession afterall.  Bascially, you can continue to shop but buy only the things on your designated purchase list.