The PayPal to M-Pesa service allows users in Kenya to move money between their PayPal and M-Pesa accounts.
Below is a step-by-step process on how to link your PayPal with M-Pesa. It facilitates carrying out transactions from PayPal to M-Pesa.
Kenya is one of the privileged countries in Africa accepted to use PayPal.
What is PayPal-MPesa?
PayPal to M-Pesa is a money transfer service that assists users in transfering money from their PayPal balance to their M-Pesa account. It also allows you to top up your PayPal account from the Kes. balance in your local M-Pesa account.
The service is a partnership between Kenyan mobile telecom company Safaricom and the popular US payment gateway, PayPal.
History of PayPal M-Pesa
PayPal to Mpesa has created a remarkable impact in the financial sector. It made it possible for people to shop online when it was difficult to do so. Life became easier, and businesses flourished due to improved transactions across borders.
The PayPal-Equity Bank partnership liberated Kenyan PayPal users, but it did not address all the bottlenecksas a result of limited access to a bank account.
After some time, PayPal partnered with Thunes, and Kenyans appreciated it because Thunes is closer to the masses than Equity Bank.
How PayPal to M-Pesa Works
The PayPal to M-Pesa withdrawal service enables users to transfer money between their PayPal and M-Pesa accounts.
To register for a PayPal account on their website, while for an M-Pesa account, visit any of Safaricom agents across the country.
Linking PayPal to M-Pesa in Kenya
First, before you begin using the PayPal Mobile Money Service with M-Pesa, you need to link the two accounts.
Follow the steps below for activation:
1. Open the PayPal Mobile Money Service with M-Pesa page.
After confirmation that you are human, you will be taken to this page:
2. Log in to your PayPal account
To initiate your PayPal M-Pesa, then click the login button in the upper right corner.
It is the same login process you follow when you log into PayPal i.e using your regular PayPal username/email and password.
If you do not have a PayPal account, please sign up for one before you can use the PayPal M-Pesa withdrawal and top-up service.
Proceed to sign up for a PayPal account using the same website and refer to the instructions in the image in step 1.
3. Add your registered M-Pesa mobile number.
You will be required to fill in your M-Pesa registered mobile number. It is the Safaricom number associated with your M-Pesa account.
Once you are done, choose Link Your Accounts option.
4. Get and fill in using the confirmation code received
For security measures, before linking your two accounts, PayPal will requires confirmation that you are the one performing this action.
The system will then send the 4-digit confirmation code to your M-Pesa mobile number. Get the code from your mobile phone and fill it in.
PRO TIP: Many users have raised concerns receiving error notifications when trying to link their PayPal and M-Pesa accounts.
To address this, ensure the names used on the two accounts are similar.
If the deatails match and the error messages persists, reach out for support to get assistance.
How to Withdraw Money from PayPal to M-Pesa
After successfully linking, you will be able to withdraw money from your PayPal balance. You can only withdraw funds from your USD balance. Before withdrawing, log in to your PayPal Kenya account to convert your KES. balance to USD.
Follow the steps below traansact via PayPal-MPesa:
1. Log in to your PayPal to M-Pesa account
This allows you to access the platform and begin transacting by entering relevant details.
2. Click the withdraw button and add the amount.
The platform will display:
- The amount you intend to withdraw in Kenyan shillings.
- The exchange rate for USD to KES conversion.
- The estimated transaction completion timeline.
3. Confirming the transaction to complete the withdrawal.
PayPal to M-Pesa implies that it takes between 2 hours to 3 working day for the money to reflect in your M-Pesa account. It is determined by several factors such as the amountone is exchanging.
Loading Your PayPal Account Using M-Pesa
For many people, PayPal to M-Pesa service enables users load their PayPal accounts using their KES-denominated M-Pesa balances.
This has assisted people who can’t access to USD to fund their PayPal-MPESA account.
Clients who can’t get paid through their PayPal accounts, can do so by loading those accounts from their M-Pesa balances.
Follow the steps below to facilitate loading:
1. Determine the amount in USD Needed to to be transfered from your KES-denominated M-Pesa balance
The most reliable M-Pesa to PayPal calculator is the one provided on the PayPal to M-Pesa website.
Chosse top up tab and input the needed to transfer from your M-Pesa account in USD.
Click calculate and the amount will be displayed in Kenyan shillings. The exchange rate will also be displayed.
2. Open the M-Pesa menu
With the KES equivalent of the USD amount, proceed to transfer from your qualifying M-Pesa account in hand then open the M-Pesa Menu.
3. Go to Pay bill
On the M-Pesa menu, choose Lipa na M-PESA then click on Paybill.
4. Enter the business number 800088
You will be required to enter the business number.
5. Enter your mobile number
Enter your M-Pesa account mobile number used to link with the PayPal account.
6. Enter the amount in Kenya Shillings
This is the amount in Kenya shillings equivalent to the USD needed to load your PayPal account.
7. Enter your M-Pesa PIN created
M-Pesa PIN authorizes transfer from M-Pesa mobile wallet to your PayPal account.
This illustrates how one deposits money to PayPal account via individual registered M-Pesa account.
M-Pesa to PayPal transfer limits provided
Like any other mobile money service provier, there’s a daily limit set when loading your PayPal through M-Pesa account. The limits is applicable to the PayPal to M-Pesa service.
One can only deposit or withdraw up to Kes.150,000 in a single transaction at a go.
Daily limit is Kes.300,000 and big business entities that manage transactions above the set limits have to consider other options.
PayPal M-Pesa withdrawal rates
PayPal charges high transaction fees and this is one of the realities one will have to contend with when transacting.
Wiithdrawals attract a charge of 3% of the amount converted from USD to Kenya shillings.
When loading your PayPal from your M-Pesa account, a charge of 4% will be effected accordingly.
Common PayPal to M-Pesa withdrawal concerns
PayPal to M-Pesa withdrawal service has improved the way businesses transact in Kenya. Before the innovation was introduced, people relied on the Equity Bank service, which had limited access.
Nonetheless, there are a few issues users need to be aware of before embracing PayPal to MPesa.
Below is a discusion on issues likely to be experienced:
Holding payments due
The first payment you receive as a new user might be held for some days to mitigate financial business operational risks.
The money is usualy put on hold in escrow meaning it is placed in custody until a condition has been met.
PayPal uses a risk-based algorithm to find out whether or not to hold payment made.
The higher the risk, the longer your amount will be held in escrow.
The amount held at the receiver’s account until the sender confirms the transaction made.
Inadequate support for non-locals
Another issue faced over the past few years is inadequate local support. There is lack of a dedicated support team to attend to the specific needs of PayPal users in Africa.
For example in complex issues, you may prefer to engage a support technician to provide assistance.
Other opperational challenges people might encounter with PayPal are;
- High service fees charged
- Unfavourable termsand conditions that may lead to account suspensions and restrictive operational limits.
- Card rejection issues that can limit transactions
- Inability to complete certain transactions
Banks can also be reached out to mitigate some of the risks to enhance efficiency.
Frequently Asked Questions
PayPal users can top up their accounts from their M-Pesa mobile money account.
To utilize the service, you have to link your PayPal and M-Pesa accounts.
To facilitate withdrawal from your PayPal account directly to your qualifying M-Pesa account, you need to log in via the PayPal to M-Pesa website online.
Click the withdrawal button and follow the steps provided.
There are regular M-Pesa daily withdrawal limits that apply for the PayPal M-Pesa money transfer services.
The maximum transfer limit set is KES 70,000 while daily transactions is set to be KES. 140,000.
The M-Pesa to PayPal transfer fee charged is 4%. It is charged on the amount you intend to transfer.
For example, it can cost you around KES. 2,800 to undertake a transfer of KES. 70,000.
When you experience a challenge in linking PayPal and M-Pesa accounts, it is mainly because the details captured in the two accounts do not match.
You will need to verify that the account details, such as names, match. If the issue persists, please contact PayPal’s M-Pesa for support.
The pay bill number for the PayPal to Mpesa account is 800088.
It is the business number you will need when on the M-Pesa menu when loading your PayPal account.
Choose the account top-up feature on the PayPal to M-Pesa dashboard. You will view the exchange rate used for determining the amount in KES. It will display the amount you need to transfer from your M-Pesa account and the USD amount required to load to your PayPal account.
Click the top-up button, then enter the amount in USD that you need to transfer from your M-Pesa account.
Proceed to calculate and convert the USD amount to display the KES. Equivalent. The exchange rate used will also be shown
Conclusion
The PayPal-M-Pesa service has improved how businesses and individuals conduct transactions globally.
This has enhanced global business networks and led to a positive impact on the economy, as well as technological advancements.
To enjoy the services, please follow the step-by-step guide mentioned above. In case of any challenges, users are advised to contact customer care for assistance.
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Content Strategist with copywriting skills cultivated over five years. I have accomplished multiple projects that have yielded valuable results. I am enthralled by business, fintech, and global eco-politics practices that ensure sustainability.
