Does PayPal Work with Mpesa? Yes. PayPal is widely utilized by freelancers and businesses in Kenya as a favored method for receiving payments from clients across the globe. In Kenya, you can conveniently withdraw funds from PayPal to Mpesa, the most popular mobile money service in the country.
To use the PayPal Mobile Money Service with M-PESA, it is necessary to have registered PayPal and M-PESA accounts in Kenya. Once you have both accounts, you can proceed to link them together. We will show you a step-by-step guide on how to do it.
How to Open PayPal Account in Kenya
To get a PayPal account in Kenya, visit the PayPal website or download the mobile app. Choose between a Personal or Business account, provide your email and create a secure password. Fill in your personal details, agree to the terms. While it’s not mandatory, you have the option to link a debit or credit card to your account for faster payments. Verify your email, and you’re ready to start using your PayPal account for online payments.
Read: How to Send Money to Kenya Using PayPal
You can link PayPal to Mpesa after creating your PayPal and M-Pesa accounts. First, go to the PayPal Mobile Money portal and log in to PayPal with your login details; email and password. Then, enter the M-Pesa account phone number you would like to link to PayPal. After giving your details, you will receive a 4-digit verification code on your M-Pesa registered phone number via SMS text. Enter the code to confirm and complete linking your PayPal account to Mpesa account.
How to Withdraw Money from PayPal to M-Pesa
To withdraw funds from your PayPal account to M-Pesa, follow these steps:
- Complete the registration process and log in to your PayPal account.
- Click on the “Withdraw” option.
- Your available balance will be shown. Note that you can only withdraw money up to the available USD balance in your PayPal account. If you have funds in a different currency, you’ll need to convert them to USD on the PayPal website before proceeding.
- Enter the desired withdrawal amount in USD.
- You will be redirected to a page displaying the equivalent amount in KES, along with the current exchange rate and estimated transaction processing time.
- Review the details and confirm the withdrawal.
By following these steps, you can easily make a PayPal transfer to M-Pes account.
How to Send Money from Mpesa to PayPal
If you have funds in your M-Pes account, and you want to make online purchases or send money to a PayPal user, you can deposit money from your M-Pesa to PayPal for transactions and transfers.
To deposit from M-Pesa account to PayPal, follow these steps:
- Visit the PayPal Mobile Money portal and log in to your PayPal account. Click on “Top Up to PayPal”.
- Enter the amount you wish to deposit to your PayPal account in USD and click on “Calculate”. This will show you the equivalent amount in KES, which is the same amount you need to transfer from your M-Pesa account.
- Access your M-Pesa menu and select “Lipa na M-Pesa”. Choose the “Pay Bill” option.
- Enter the Business Number 800088 and use your phone number as the Account Number.
- You will be prompted to enter your M-Pesa PIN. After entering your PIN, click on “Send” to complete the top-up process.
- Top-ups to your PayPal account are usually processed in real time. However, it may take up to 4 hours for the funds to be credited. You will receive a confirmation text from M-Pesa and an email from PayPal once the funds are successfully credited to your account.
PayPal M-Pesa Tanzania. The PayPal service is available in Tanzania. However, you can only send payments, but there is no way to receive payments using PayPal in Tanzania. This is because Tanzania is registered on the “send only” category of countries.
PayPal to Mpesa Charges
There are charges for withdrawing from PayPal to Mpesa account in Kenya. For withdrawals from PayPal to M-Pesa, you will be charged a 3% currency conversion fee of the withdrawn amount. For sending money from Mpesa to PayPal, you will pay a 4% currency conversion fee of the amount topped up. Additionally, the normal M-Pesa charges will apply for all other transactions.
PayPal M-Pesa Transaction Limits
Transactions are subject to the daily limits as set by PayPal and M-PESA. Currently, M-PESA has a daily transaction limit of 300,000 KES, and each individual transaction is limited to 150,000 KES. It’s worth noting that the minimum withdrawal amount is set at 100 KES.
Is it Safe to Use PayPal M-Pesa?
Using PayPal M-Pesa is generally considered safe as both PayPal and M-Pesa are reputable companies with established security measures in place. However, it’s important to be aware of certain risks associated with online payment services. To ensure your safety, remember to create a strong and unique password for your PayPal account and avoid clicking on links from unknown sources. Keep your PayPal account information up-to-date and be mindful of the fees involved in using PayPal M-Pesa.
Final Thoughts on PayPal M-Pesa
To sum up, Whether you’re a freelancer, business owner, or individual, withdrawing money from your PayPal account to your M-Pesa account is a straightforward and convenient way to access your funds. By following the steps mentioned in this article, you can easily initiate the withdrawal process and securely transfer your money from PayPal to Mpesa.