As Mpesa mobile money services continue to dominate the Kenyan market, PayPal M-Pesa is running parallel to it.
PayPal M-Pesa is a service offered to M-Pesa customers by TransferTo in partnership with Safaricom and PayPal.
The service is only available to users in Kenya with registered M-Pesa accounts, Google accounts, and Android devices.
So many people prefer to use M-Pesa because;
- It makes banking faster
- Banking is safer
- Banking operations are easily accessible
- One can pay bills or buy goods and services from their phones.
- One can easily monitor transactions.
For you to be able to access money from PayPal through M-Pesa, you need to follow these steps;
Step 1: Link Paypal to Mpesa
Before you link PayPal to M-Pesa, you first need to;
- Have a PayPal account. To get an account, all you have to do is sign up.
- The PayPal account has to be registered as Kenyan otherwise the two accounts won’t be linked.
- Ensure the names used in signing up for PayPal are the same as the ones used in your M-Pesa account.
- Register for M-Pesa, following their guidelines.
If you have all that done, you can now move on to connect your PayPal to M-Pesa, through these steps;
How to Connect Your PayPal Account With M-Pesa
- Go to the Paypal Mobile Money page.
- Log in to your PayPal account using your login details.
- Enter the phone number registered for M-Pesa.
- Accept terms and conditions
- Enter the 4 digit code sent from Safaricom to the mobile number associated with your M-Pesa and confirm.
Step 2: Transfer your money from PayPal to Mpesa
After you have linked your Paypal to M-Pesa, you are now ready to start using the service.
You will have to work with two currencies in mind; the currency your PayPal account uses and Kenyan shillings.
These are the steps you will have to follow;
- Check how much you have in your account.
You will only be able to withdraw from Paypal the amount that is in your account or less.
If you have a balance in your PayPal account in a different currency, what you need to do is login to your PayPal account and convert the money into USD.
- Key in the amount you would like to transfer from your PayPal account in USD.
- You will be redirected to a page showing the amount to be received in Kenyan shillings, the exchange rate used for the currency conversion, and the estimated transaction processing time.
1 Kenyan shilling is approximately 0.0098 USD which means that to withdraw 100 Kenyan shillings, you would have to withdraw 1 USD.
- Confirm and complete the withdrawal of funds.
After confirming the transaction, it only takes between 2 hours to 3 calendar days to process a withdrawal from your PayPal account to your M-PESA account, depending on the transaction value. The estimated time will be presented to you before confirming the transaction.
Step 3: Withdraw from M-Pesa
After the time specified to you at the time of the transaction has lapsed, you will receive a notification message from M-Pesa stating that the transaction was successful.
You are then free to use your money locally as you want.
To withdraw money from M-Pesa, just follow the steps outlined below
- Go to the nearest M-Pesa agent
- Go your Sim Toolkit to access Safaricom services
- Click on M-Pesa
- Go to your M-Pesa menu and choose the option, “Withdraw money”
Then enter the amount you wish to withdraw, the number of the nearest M-Pesa agent and wait for a text to confirm the transaction. You will be handed your exact amount.
Alternatively, you could use the “Lipa na M-Pesa ” option in the M-Pesa menu to pay for goods or services.
Or you could also pay your bills using the “Pay Bills” option.
It is important to note that there are withdrawal charges for PayPal to M-Pesa.
PayPal charges 3% of the amount converted from dollars to Kenyan shillings.
For M-Pesa transactions, the standard M-Pesa withdrawal and transfer rates apply.
It is also important to note that the maximum amount that M-Pesa can hold is 100,000 Kenyan shillings and the maximum daily transaction value is 140,000 Ksh.
Each transaction should not be above 70,000 Kenyan shillings.
Also, you cannot withdraw less than 50 Kenyan shillings at an outlet.