What is PayPal Mpesa? How does it work? If you are curious to know, please read on!
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. Western Union, PayPal, Payoneer, Skrill, 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. These services are enabled by PayPal’s web and mobile applications. Kenyans, especially freelance service providers, can receive payments through the platform.
Receiving Money via PayPal while in Kenya
You can receive funds while in Kenya via PayPal. All you need to have is a verified PayPal account. Creating an account is easy as long as you have an email address and provide the required information.
PayPal Fee Calculator, 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.
- Transaction fee: 4.4% * $104.92 = $4.62
- Flat Fee = $0.30
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.
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. 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 PayPal Mpesa?
PayPal Mpesa is a platform that enables users to receive funds in Kenya Shillings in their Mpesa accounts from PayPal. It is a partnership between Safaricom PLC and PayPal Ltd and their web application is operated by Thunes. Users should have a verified PayPal account and a registered Safaricom mobile number with Mpesa.
PayPal Mpesa is easy and fast. Users can receive funds into their Mpesa account in a few minutes. Topping up from Mpesa to PayPal is also quick and with good exchange rates.
How to Link PayPal Account to M-PESA in Kenya
- Go to PayPal mobile money website and log in with PayPal.
- Read and Agree to PayPal’s terms and conditions.
- Enter your registered M-PESA mobile number- the one you wish to link with PayPal.
- Click on link accounts.
- Enter the verification code sent via SMS to your mobile.
- Complete the linking process and start using the service.
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 Withdraw Money from PayPal to Mpesa?
Assuming you already have a PayPal account and linked it with your M-PESA Mobile Account,
- Go to the PayPal Mpesa Website.
- Click on “Get Started” and log in using PayPal
- Click Withdraw from PayPal
- Enter the Amount you wish to Withdraw (Your balance is displayed in USD. If your funds are in any other currency, go to your PayPal account and first covert it.)
- Click on “Continue to Withdraw”
- You will then be redirected to a page showing the following;
- Total amount to be received in Kenya Shillings.
- The Exchange rate used to convert USD to KES
- The estimated processing time for the transaction.
Once you are happy, proceed with funds withdrawal.
It takes anywhere from a few minutes to 3 days to process a withdrawal request from PayPal to an M-PESA account. This depends on the transaction value. The more the funds, the longer the time.
Users can only withdraw Kshs 150,000 per transaction. Also, M-PESA accounts cannot hold more than Kshs 300,000.
PayPal to M-PESA withdrawal errors
Sometimes you will get an error message when trying to withdraw. “Oops, the withdraw could not be completed”. To fix this error, contact PayPal on their website or social media pages. The error is fixed between 48 and 72 hours.
How to Top-up Your PayPal account with Mpesa
Topping up from M-Pesa to PayPal is way easier than withdrawing. All you have to do is follow these steps;
- Go to PayPal Mobile Money Service with M-PESA
- Log in with your PayPal Account
- Calculate Kenya Shillings equivalent of the USD you want in your PayPal.
- Go to your M-PESA Account, select Lipa na M-PESA, and then the Pay Bill option.
- Key in PayPal’s Business Number 800088
- Enter the Account Number – Your Mobile Number. (The one registered on PayPal for Mpesa).
- Enter your PIN and click Send. (You receive a text message to confirm the transaction.)
- Go to your PayPal Account and check your Balance.
Top-Ups from M-PESA to PayPal accounts are processed in real-time. However, the transfer may take up to 4 hours. In case of any issues, contact support for assistance.
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. 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.
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