How To Use PayPal Mpesa To Send Money In Kenya

What is PayPal Mpesa? How does it work? If you are curious to know, please read on! How To Use PayPal Mpesa To Send Money In Kenya.

At some point, we (mostly freelancers) all need a way to transfer funds online. And, in the modern world of advanced technology, many companies are offering such services.

• Skrill,
• PayPal,
• Payoneer,
• Western Union,
• Google Pay, and
• Stripe are just a few of them.

However, due to its integration with Mpesa and security, PayPal is the most preferred service in Kenya.

It has its drawbacks, but the ease of transacting and invoicing makes it a favorite.

What is PayPal?

PayPal is one of the best online money transfer services in the World. The company helps customers to send and receive payments through. Here is How To Use PayPal Mpesa To Send Money In Kenya.

These services are enabled by PayPal’s web and mobile applications. Kenyans, especially freelance service providers, can receive payments through the platform.

What is Mpesa?

Mpesa is a Central Bank of Kenya (CBK) regulated mobile-phone-based banking service by Safaricom PLC.

It allows users to send and receive funds in Kenya Shillings via a mobile device.

Although it initially only enabled Kenyans to store and transfer money locally, the service has gone international.

Related Post: Best PayPal Alternatives For Online Payments

It is now possible to send and receive money, and shop globally with Mpesa. To sign up for M-PESA, a user has to visit their nearest M-PESA agent or Safaricom shop with an ID.

M-PESA services are also accessible via M-PESA App by Safaricom. The App has more features and offers.

What is M-PESA PayPal? What is PayPal Mobile Money Service with M-PESA?

The PayPal Mobile Money Service with M-PESA is a money transfer service for PayPal and M-PESA customers, provided by TransferTo in partnership with Safaricom and PayPal.

To qualify, you must have an eligible Kenyan PayPal and M-PESA account. When registering to use the service, you’ll link your two accounts and will be able to move your money from one to the other.

Who Can Use PayPal Mpesa?

How Do I Withdraw From PayPal To M-PESA?

How To Link PayPal Account to M-PESA

In early 2018, M-PESA partnered with PayPal to help its users transact between the two popular platforms with ease.

Before that, the most straightforward way to transact would be to link your PayPal account to your Equity Bank account.

While this method did work, it took a couple of days to complete a transaction, not exactly 21st-Century-like.

The new partnership aided by international mobile money enabler, Transfer To cuts that down to a much more reasonable 2-3 hours.

Related Post: How Do Banks Make Money?

To take advantage of this, you need to be an M-PESA customer and you need to have a Kenyan PayPal account.

That simply means that your nationality should be set to Kenyan in your PayPal account otherwise this won’t work.

Linking PayPal To MPESA Account

How To Use PayPal Mpesa To Send Money In Kenya.

• Go to www.paypal-mobilemoney.com/m-pesa.
• You will need to log into your Kenyan PayPal account.
• You will have to agree to TransferTo’s terms and conditions for using the service.
• Add the Safaricom MPESA number you’d like to link to the PayPal account.
• You will receive a verification code on your Safaricom line via SMS text. Key in this code to complete the link.

How To Solve PayPal Mpesa Linking Errors?

It often happens that users are unable to link Mpesa with PayPal. This is due to a mismatch between registered names on Mpesa and though on PayPal.

To solve this issue, ensure that your details on both accounts are similar. sometimes you have to register a new mobile number with Safaricom.

If this problem persists, contact Thune’s support for further assistance

How To Top Up Your PayPal Account with MPESA

• Calculate the KES amount you need to convert to get the USD amount you want in your PayPal account.
• Open your M-PESA, select “Lipa na M-PESA”, then “Pay Bill”.
• Enter 800088 as the business number, and your phone number as the account number.
• You will receive an SMS confirming that USD were added to your PayPal balance. You can also check the status on the Transaction History page.

There is an easy to use Currency Converter on this page that is updated daily. It is also important to note that a transaction fee is also applicable.

What Is PayPal MPESA Pay Bill number?

The PayPal M-PESA Pay Bill number is 800088.

Once you link MPESA to PayPal account, you can select Lipa na M-PESA on your registered Safaricom mobile number.

Then go to Pay Bill option in the M-PESA menu and enter 800088 as the business number.

What Charges Will Apply for PayPal Mpesa Withdrawal/Top up Service?

What is PayPal Mpesa Exchange Rate in Kenya

It is worth noting that while receiving Money via PayPal in Kenya, you’ll incur some charges. These include a flat fee of $0.30 and a transaction fee of 4.4% per transaction.

For example, if you need $100, you should ask for $104.92.

• Flat Fee = $0.30
• Transaction fee: 4.4% * $104.92 = $4.62

Total Fees: $4.92

What you will Receive: $104.92 – $4.92 = $100

However, if you invoice for $100, you will end up receiving $95.30.

PayPal Mpesa Alternatives

Although PayPal Mpesa is the best, other service providers enable users to transfer funds to Mpesa. In most cases, these services are more expensive. Lean How To Use PayPal Mpesa To Send Money In Kenya.

Their USD to Kenya Shillings exchange rates are unfavorable.

And they also take longer to process your transaction requests. However, one of the best alternatives worth mentioning is Equity Bank.

With their secure web platform, PayPal to Equity Bank service processes transactions in 24 hours. Their rates are friendly and, the process is easy.

How Long Does It Take To Receive Funds After Withdrawal?

What is the PayPal Mpesa Maximum Amount I Can Withdraw or Top Up?

How Do I Know When The Money Have Been Credited To My Account?

What’s The PayPal to Mpesa Partnership All About?

---

When Safaricom introduced Mpesa to the general public, only a few could have predicted it wouldn’t go as far as it has now.

It has gone on to become a major player in the history of mainstream mobile payment services.

It is now used by more than 30 million people in Kenya, making it one of the largest mobile money services in the world.

This has not only helped improve the lives of Kenyans but has also helped spur economic growth in the country.

The introduction of Mpesa has also impacted other industries, such as the banking sector.

It has been the bellwether for other mobile payment services to follow.

One of the biggest impacts of Mpesa is that it has made it easier for people to transfer money between themselves.

This has led to a massive increase in the amount of money transferred in the country.

The second biggest impact of Mpesa is that it has enabled people to access financial services that were previously only available to those who could access a bank branch.

Sometime in 2018, Mpesa, through Safaricom, announced a partnership with PayPal that would enable users of both services to connect both digital wallets and make transactions between them seamlessly.

This is a major step forward for the country’s largest financial inclusion program.

It will enable Safaricom’s mobile money to take up a greater market share and bring more people into the formal economy.

It’s also a big win for PayPal, which has struggled to gain a foothold in Africa.

This partnership was a game changer for financial inclusion in Kenya.

It allowed users to access the benefits of a modern financial system without having to leave the Safaricom ecosystem.

The partnership also marked the first time Safaricom had worked with a competitor in the digital banking space, which was seen as a significant development for the sector and a sign of the company’s willingness to embrace new technologies.

The partnership has also enabled Safaricom to offer its services to a wider audience than ever before, with users in rural areas now able to access banking services through the partnership.

This has resulted in a significant increase in the number of customers using Safaricom’s banking services.

What Are The Things You Need To Know About The PayPal Mpesa Mobile Money Service ?

---

The PayPal Mobile Money Service with Mpesa has its own rules, and users must adhere to these rules if they want to maintain a good account. Let’s explore some of these rules below;

KSH to USD and Vice Versa

This partnership between PayPal Mpesa only allows withdrawal of USD to KSH and deposit of KSH to USD. People think this can be improved as they want to transact in other international currencies.

Daily Limits

Just like with every other online payment service, there’s a daily limit when using the PayPal Mobile Money Service with Mpesa.

You can only deposit or withdraw up to 150,000 KES on a single transaction, and there’s a cap of 300,000 KES daily.

If you’re going to be using this service, you need to understand the limit, and if you’re a big business that will handle bigger transactions above the given limit, you may have to look elsewhere.

There Are Service Charges

Because this is a collaboration between a Kenyan mobile money payment solution provider and an American big name doesn’t mean there won’t be charged for the services you use and enjoy.

You can be charged up to 3% for conversion fees whenever you process withdrawals. You can also be charged up to 4% when you deposit from KES to USD.

Challenges of PayPal Mpesa Withdrawal

---

PayPal to Mpesa withdrawal has helped many businesses in Kenya. Solved the problem of withdrawal of Money. Many people only relied on Equity Bank in the past before the PayPal Mpesa partnership was struck.

However, a few drawbacks make people have second thoughts before they commit to using PayPal to Mpesa generally in Kenya.

From account restrictions to held payments – there’s a host of challenges the users of this PayPal Mpesa face, and we’re going to discuss some of them below.

Held Payments

If you’re a new PayPal user. The first payment you receive might be held for some days to make sure the sender doesn’t raise any dispute regarding the payment.

This is because PayPal uses a risk-based algorithm to determine whether to hold the payment.

The higher the risk, the longer the amount will be held. The amount is held in the receiver’s account until the sender confirms the transaction from their end.

This is not generally welcomed in some parts of the world because it can take a long time for a payment to eventually reflect, especially when the sender doesn’t know where to confirm the transaction.

If you manage to find a better alternative to PayPal. You may never have to go through anything like held payments again. Except if something out of control happens, which shouldn’t if your online business is legitimate.

Non-local Support

Another challenge African PayPal users have faced over the past few years is inadequate support for local users.

There is no dedicated support team to cater to the specific regional needs of PayPal users in Africa, and that’s sad.

On the other hand, this doesn’t come as a surprise to many people as PayPal was not originally tailored to meet users’ needs in this part of the world.

So, instead of sticking blindly with a system that doesn’t fully support your craft/business, you should find a better payment provider that offers services tailored specially for African businesses.

Other challenges include;

• Hefty Service Fees.
• Card Rejection Issue.
• Inability To Complete Transactions.
• Limitations to unstable terms of use could land you account suspensions and limits.