PayPal has opened its doors to customers of DBS bank and POSB bank. Bank account holders will soon be able to shop online at stores that accept Pay-Pal payments.

This change will come into effect by June of this year. While earlier, Pay-Pal payments were only possible through credit or debit card transactions, customers will then be able to directly use their bank accounts to make payments. It will not be imperative for customers to own a debit or credit card.

The new Pay-Pal system offers another advantage. Shoppers as of now have to shell out a fee for overseas bank transfers. This fee is not applicable under the new Pay-Pal system.

However, items priced in foreign currencies will be levied with a 2.5 per cent fee. Pay-Pal will also set the currency- exchange rate.

Pay- Pal and DBS said that this modification will give consumers more methods to shop online.

Scott Thompson, president of PayPal, said, "Over the last five years, PayPal's payment volumes in Asia have grown by nearly 400 per cent". This change will accentuate the growing online shopping industry in the Asia- Pacific.