Everything You Need to Know about PayPal in Kenya

Everything You Need to Know about PayPal in Kenya
PayPal is the leading digital payment platform that allows users to easily, securely, and quickly transfer money to one another locally and internationally. In Kenya, more people are turning to PayPal for their online money transfers as it is fast, secure, and convenient.

What are the requirements to open a PayPal account in Kenya

Additionally, PayPal supports transfers to and from M-PESA and Equity Bank. M-PESA is the most popular mobile money option in Kenya and is particularly popular with the unbanked population. Equity Bank, on the other hand, is one of the largest banks in the country.

Therefore, the partnership between PayPal and these two leading financial brands makes it easier for Kenyans to send and receive money locally and internationally. This blog post will unravel everything you need to know about PayPal in Kenya.

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How to Create a PayPal Account in Kenya

One of the most common questions by Kenyans is how to create a PayPal account. To get started with PayPal, here are the steps you should follow:

  1. Go to the PayPal website (https://www.paypal.com/ke/home) and click on the “Sign Up” button at the top right of the page.
  2. A new page with two account types will appear. Select “Personal” if you are making the account for yourself or “Business” if it is for your business, and click “Continue.” In our case, we will create a personal account.NB: You can upgrade to a business account at any time.
  3. Next, you will be prompted to select your country of residence. If you reside in a different country than Kenya, you can use a VPN because PayPal is geolocation sensitive. After selecting the country, you should click “Get Started.”
  4. The next step is to add your mobile number. After adding the number, you should click “Next.” You might be prompted with a security challenge to confirm you are a real person.
  5. confirmation code will be sent to your phone via SMS. Enter the confirmation code.
  6. If the code is correct, a new page will appear, prompting you to enter your email address and first and last name and create a password. After that, you should click “Next.”
  7. The next step is to add your address information. You will be required to add the Date of Birth, National ID, Driving Licence, or Passport Number, Address Line, City, and Postal Code. NB: You should ensure the details above match your M-PESA details if you want to link your PayPal account with MPESA.
  8. Once you enter the address details, you should click “Agree and Create Account” at the bottom of the page to complete the process.
  9. After that, you will be prompted to select what you want to try. The options are “Send Money” or “Shopping.” You can skip the step by clicking the “Not Now” button at the bottom of the page.
  10. Next, you should link your account with a card. You will be required to add the following card details: card number, card type, expiration date, CVV/security code, and billing address.
  11. After entering these details, you should click “Link Card” to complete the process.

And there you have it! You have successfully created your PayPal account in Kenya.

How to Verify a PayPal Account in Kenya

It is essential to verify your PayPal account to increase the withdrawal and spending limit. Verification also helps avoid suspension when making payments.

PayPal verification also increases your credibility and security. To verify your account, you should follow these steps:

  1. First, go to the inbox of the email address you used to create your PayPal account. You should find an email from PayPal with the subject “Confirm Your Email Address.”
  2. Open the message, and click on the link provided to confirm that it belongs to you. You will be prompted to enter your password. Once you enter the password, click “Confirm Email Address.”
  3. Next, you should add your credit/debit card information. This will help verify your identity and increase your spending limit. If you did it when creating a PayPal account, you are good to go.
  4. To link your credit/debit card, go to the PayPal website and click “Wallet” at the top of the page.
  5. Then, click on “Link a Card,” select your card type, enter your card number and other details, and click “Link Card.”NB: PayPal will charge a refundable $1 fee to verify your card.
  6. After 3-5 business days, you will receive a confirmation code in your card statement. You can access this statement from your bank transaction codes. It looks like this PP*0123CODE.
  7. Finally, log in to your PayPal verification link and click it. Enter the code, click “Confirm,” and your account will be verified.

How to Link PayPal with MPESA

Mobile money has revolutionized the way people send and receive money in Kenya. You can link your PayPal with MPESA to withdraw and deposit money from your PayPal accounts to your Safaricom number.

To link PayPal with MPESA, you should follow these steps:

  1. First, go to the PayPal-MPESA login website (https://www.paypal-mobilemoney.com/m-pesa) and click “Get Started.”
  2. A new window prompting you to connect your PayPal account will appear. Scroll to the bottom of the page and click “Agree and Connect.”
  3. You will be redirected to the previous window and requested to enter your Safaricom phone number. Enter the number and click “Link your accounts.”
  4. After that, you will receive a message on your Safaricom number with a confirmation code. Enter this code and click the “Confirm” button.
  5. Your PayPal and M-Pesa accounts will be linked. You can now transfer money from your PayPal account to M-Pesa and vice versa. You can click the “Start using the service” button to withdraw from PayPal or top up your account.

How to Link PayPal with Equity Bank

You can also link your PayPal account with an Equity Bank Account. This will allow you to send, receive and withdraw funds from your PayPal account directly into your bank account. Here’s how:

  1. First, log in to your Equity Bank online portal (https://equityonline.equitygroupholdings.com/en/access/login) or app.
  2. Then, select the “Link Account” option from the “My PayPal Accounts” section on the home page. This will take you to a page prompting you to link your Equity Bank account with your PayPal account.
  3. Next, enter the email address associated with your PayPal account and click “Continue.”
  4. A window will appear, prompting you to enter your PayPal login details. Enter the details, and click “Agree and Connect” at the bottom of the page.
  5. The next step is to select the Equity Account you want to link and check the terms and conditions. Select the account you want to use, and click “Continue.”
  6. You will receive a verification code via SMS on your registered phone number. Enter this code, and click “Verify.”
  7. Finally, you will be directed to the Equity Bank portal with a message confirming that your account has been successfully linked. Click “Done” to finish the process.

Now you can withdraw funds from your PayPal to Equity Bank account.

How to Withdraw Money from PayPal to MPesa

You can withdraw money from your PayPal account directly into your M-Pesa account. The withdrawal process is simple.

  1. The first step is to go to the PayPal-MPESA link (https://www.paypal-mobilemoney.com/m-pesa) and click “Login” in the upper right corner.
  2. You will be redirected to the PayPal login page, where you should enter your email address and password. Click “Login.”
  3. Once logged in, click the “Withdraw from PayPal” button.
  4. The next step is to enter the amount you want to withdraw. You should ensure you have the amount you want to withdraw in your PayPal balance.
  5. After that, click “Continue to Withdraw.” A new page will appear showing the amount you want to withdraw in Kenya Shillings. You will also see the current exchange rate.
  6. Click “Confirm” to initiate the transaction. You will receive a confirmation message indicating that the withdrawal has been successful.

Withdrawal from PayPal to MPESA takes a few minutes if the amount is below $700. Any amount above that limit will take around 3 business days.

The cost of PayPal to MPESA transfers is a flat fee of $0.30 and a transaction fee of 4.4%. For example, if you withdraw $50, the transaction fee will be $2.5, which is $50 X 0.044 + 0.30.

How to Withdraw Money from Paypal to Equity

You can also withdraw funds from your PayPal to Equity Bank. Unlike PayPal-MPESA withdrawals, you initiate this process from the Equity Bank App or online portal.

  1. First, log in to your Equity Bank online portal (https://equityonline.equitygroupholdings.com/en/access/login) or app.
  2. Then, select the 3 dots from the “My PayPal Accounts” section on the account you want to withdraw funds from.
  3. A pop-up menu will prompt you to select “Withdraw from PayPal.” Select this option.
  4. Next, you will be asked to enter the amount you want to withdraw and the PayPal account you want to withdraw from. Click “Withdraw” when done.
  5. You will receive a confirmation message indicating that the withdrawal has been successful.

The cost of withdrawing money from PayPal to Equity Bank is a conversion fee of 2.5% above the prevailing exchange rate. The conversion fee is charged by Equity Bank and not PayPal.

How to Send Money from MPesa to PayPal

You may want to transfer funds from your MPesa account to your PayPal account. This is possible if you have linked both accounts.

  1. First, go to your MPESA menu and select “Lipa Na MPESA.”
  2. Then, select the option for “Paybill.”
  3. Enter the PayPal business number (800088), and then enter your phone number as the account number. Ensure that you have already linked the number to the PayPal account.
  4. The next step is to enter the amount you want to transfer and then enter your MPESA PIN.
  5. Confirm that the details are correct and click “Ok.”
  6. You will receive a confirmation message from MPesa indicating successful withdrawal.
  7. Once the transaction is complete, you can check your PayPal account balance to see if the amount has been credited successfully. You will incur foreign exchange fees when transferring funds from MPesa to PayPal.

PayPal Charges in Kenya

You will pay a fee when you use PayPal to send or receive money in Kenya. The fees depend on the type of transaction and your account status.

For PayPal to MPESA transactions, the cost is a flat fee of $0.30 and a transaction fee of 4.4%. For example, if you withdraw $100, the transaction fee will be $4.70, which is $100 X 0.044 + 0.30.

When sending money from PayPal to Equity Bank, there is a conversion fee of 2.5% above the prevailing exchange rate. For example, if you send $100, and the prevailing exchange rate is 100 KES/USD, you will pay a conversion fee of 2.5%, which is $2.50.

In addition to the fees mentioned above, there are also merchant fees when you use PayPal to accept payments from customers in Kenya. The fees depend on the type of account and whether or not the payment is international.

Conclusion

PayPal is a convenient and secure way to send and receive money in Kenya. You can link your MPesa or Equity Bank account to your PayPal account, allowing you to transfer funds between the two accounts easily. You will incur charges, including transaction and conversion fees, when using PayPal.

Understanding these fees will help you plan and budget your payments more effectively. PayPal also offers merchant services and fees for those who accept payments online.

PayPal is a great option for individuals and businesses in Kenya who need to send and receive money locally and internationally.

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