Kenya is one of the biggest economies in Africa. The country is known for its athletes, tourism, and also its financial sector. Every year, the country from remittances. A recent report found that Kenyans living abroad sent back home more than Ksh. 280 billion. This is almost $3 billion and is more than the remittances of the rest of East African countries combined. These are the popular methods of sending money to Kenya from abroad.
In this article, we will look at the process of sending money to Kenya with PayPal.
What is PayPal?
PayPal is one of the biggest fintech companies in the world. As of the time of writing, the company is valued at more than $120 billion. The only fintech companies that are valuable than PayPal are Visa and Mastercard.
PayPal was started in 2002 by Peter Thiel, Max Levchin, Yu Pan, and Elon Musk. This group is often known as the PayPal mafia. Thiel went on to fund the likes of Facebook and Palantir Technologies. Musk went on to start Tesla and SpaceX while Max Levchin went on to start Slide that was sold to Google for almost $200 million. Yu Pan has invested in many companies. He was also the first employee of YouTube.
PayPal was sold to eBay for more than $1.2 billion. After years of growth, the company was made public in 2014. Today, the company has seen exceptional growth and is one of the fastest-growing companies in the world.
Sending Money to Kenya Using PayPal
The process of sending money to Kenya through PayPal is very easy. If you are a new customer, you will need to first sign up to PayPal. All you need is an email address and a debit or credit card. After you sign up, you will need to verify the card. To do this, you should link it to your account and then verify with the four-digit code that PayPal will send you. Finally, you need to verify your address. You do this by uploading a recent bill that shows your address.
After this, you need to deposit funds to your PayPal account. The easiest way to do this is to use your debit or credit card.
Finally, you should get the email address of the recipient and send the funds. A better way to do this is to request the Kenyan recipient to send a funds request. This will help you send to the correct address.
Benefits of Sending Money To Kenya Using PayPal
There are several benefits that you get for sending money to Kenya via PayPal. Some of these are:
- PayPal is fast – The recipient will get the funds right away.
PayPal is safe – PayPal is one of the safest methods of transferring funds.
PayPal is easy to use – The company’s web and mobile platforms are very easy to use.
What are the Disadvantages of Sending Money to Kenya Using PayPal?
While PayPal is a good option to send money to Kenya, it has its drawbacks. The main disadvantages of sending money to Kenya using PayPal are:
- PayPal is expensive – PayPal charges 2.9% of the total amount plus another $0.30. This amount can add up.
Exchange rates are inefficient – Banks and other intermediaries have ways of interfering with exchange rates.
Longer withdrawal period – It takes three days for your funds to get to your bank account.
How to Withdraw Funds From PayPal in Kenya
Broadly speaking, there are two main methods your recipient can withdraw their PayPal funds in Kenya. First, they can withdraw the funds directly to their bank accounts. However, in Kenya, Equity Bank is the only bank that has this capability. It is impossible to withdraw PayPal funds to bank accounts in Standard Chartered, Co-Operative Bank, Family Bank, etc.
To withdraw funds to Equity Bank, you first need to link your PayPal account to your Equity bank account. After this, log in to your Equity Bank account, select your PayPal account, and the amount you want to withdraw. You will get an email confirmation after the transaction is completed. The funds should take about three days to hit your account.
The other option is to withdraw your funds to M-Pesa. Safaricom has partnered with PayPal and a company called Thunes that enables this transaction to happen. To transact, you need to link your m-pesa number to your PayPal account. You do this by signing up to the company using this link. After linking the two accounts, you can withdraw the funds. They usually hit your M-Pesa account in less than a day.
Best PayPal Alternatives in Kenya
Coupon code WorldRemit
As mentioned above, PayPal is a good option but it also has its own disadvantages. Therefore, you should consider some faster and cheaper options of sending money to Kenya. The best options are:
- TransferWise – This sends money to a Kenyan bank account or M-Pesa faster with minimal costs.
World Remit – This is similar Transferwise. The difference is that you can collect money at one of its many agencies.
Bank Transfer – This allows funds to be deposited directly to your bank account. It takes less than a day for funds to arrive.
Bitcoin – You can send funds faster using Bitcoin. There are minimal fees and the Kenyan recipient can exchange the funds immediately.
PayPal is a big network and is one of the biggest companies in the world. The company allows you to send money to Kenya and to other African companies. The main precaution is to avoid sending money to a person you don’t know. Another precaution is to always verify the address of the recipient