PayPal and DBS Bank today signed an agreement to offer 4 million DBS/POSB customers yet another payment choice for their online purchases via PayPal.

In the middle of the year, DBS/POSB customers can debit their respective bank accounts to fund their PayPal accounts.

DBS/POSB customers make up 90% of the bank account holders in Singapore, and through PayPal, they can shop online at Singapore merchants as well as at nearly eight million retailers globally.

Cross border trade accounted for 25% of PayPal’s total payment volume of US$71 billion ($99 billion) in 2009.

With the largest consumer Internet banking customer base of more than 1.35 million customers and a 35% market share, DBS has seen a steady increase in iBanking users over the past year.

The bank has also seen an average of about three million logins a month to its iBanking service, with transaction values increasing over the past two years.