In this article, we shall explain the steps you need to take in order to register and use Paypal in Kenya using your Mpesa account
What is PayPal?
PayPal, a widely used and well-established digital payment system, offers a secure online financial service that allows users to make payments using their bank accounts, credit cards, or debit cards. By linking their preferred payment methods to their PayPal accounts, users can conveniently select which source to use for each transaction, with the option to set a default payment method if desired.
In addition to making payments, PayPal also facilitates receiving money. Funds received are stored in the user’s PayPal account and can be utilized for future purchases. If the balance is insufficient, it can be supplemented by the assigned cards or bank account. Alternatively, users have the option to transfer the funds to their linked bank accounts or cards. While there may be fees associated with receiving money in a PayPal account, using the service for purchases is largely free.
PayPal offers several advantages over other online payment systems such as Apple Pay and Google Pay. Firstly, due to its long-standing presence and widespread acceptance, PayPal is supported by numerous online retailers, including smaller businesses that may not offer alternative digital payment options. Moreover, PayPal provides buyer protection, ensuring refunds if an item purchased online fails to arrive or doesn’t match the seller’s description. Sellers who receive payments through PayPal are also safeguarded. For instance, if sellers can provide evidence of shipping an item and the buyer claims non-receipt, the seller retains the full payment.
Another reason to choose PayPal is its enhanced security features. Users are not required to enter their card details or CVV numbers for every purchase; they only need to log in to their PayPal account using their login credentials or mobile number and PIN. As a result, the online store does not store the user’s payment information in its database. Additionally, PayPal offers the convenience of OneTouch payments, allowing users to remain logged in and bypass the need for re-entering their details during subsequent purchases across various stores. This feature is device and browser-specific, meaning it only functions on the specific computer and browser where it has been activated.
Is Paypal available in Kenya?
Yes, PayPal operates in Kenya, and having a PayPal account is essential for individuals in the country who work online and need to receive payments.
How to create a Paypal account in Kenya
- Visit the PayPal website using your preferred browser, specifically the PayPal Kenya login address.
- Click on “Sign Up for Free” to be directed to the registration page.
- Provide the required details.
- Choose the account type (personal or business).
- Enter your valid email address and phone number for verification purposes. You will receive an SMS and an email with verification instructions.
- Enter your first name and last name as they appear on your national identification card.
- Create a strong password containing special characters, numbers, and a mix of capital and lowercase letters.
- Confirm your password and proceed to the next step.
- Accept the terms and conditions to complete the account creation process successfully.
How to link your bank account or credit card to Paypal
To link your bank account or credit card to your PayPal account for withdrawals, follow these steps:
- Log into your PayPal account using your email address and password.
- Click on the gear icon located next to the “Log Out” option, which will open a new window.
- Under “Business/Personal Profile,” select “Money, Banks, and Cards.”
- Follow the instructions provided to link your bank account or card. A verification code will be sent to your account statement, and a small amount may be deducted, which will be refunded upon verification.
How to withdraw funds from PayPal to Mpesa
For withdrawing funds from PayPal to M-PESA, the mobile money service in Kenya, follow these steps:
- Log in to your PayPal account using the link: https://www.paypal-mobilemoney.com/m-pesa.
- Select the “Withdraw” option, which will display your available balance.
- Enter the desired amount to withdraw in USD and click on “Withdraw.” Note that the withdrawal is limited to the available USD balance in your PayPal account.
- You will be redirected to a page showing the amount to be received in Kenyan Shillings, the exchange rate used, and an estimated transaction processing time.
- Confirm the transaction to initiate the withdrawal process.
How to top up your Paypal account using Mpesa
To top up your PayPal account using your M-PESA balance, follow these steps:
- Visit the M-PESA PayPal webpage (link provided) and select “Top Up funds.”
- Enter the desired amount to top up in USD and click on “Calculate” to obtain the equivalent converted amount in Kenyan Shillings.
- Access your M-PESA menu, select “Lipa na M-PESA,” then choose the “Pay Bill” option.
- Enter the business number 800088 and use your phone number as the account number.
- Enter the amount in Kenyan Shillings.
- Provide your M-PESA PIN and confirm the transaction.
How long does it take for funds to be processed from Paypal to Mpesa?
The processing time for funds to be received after withdrawal from PayPal to M-PESA typically ranges from 2 hours to 3 calendar days, depending on the transaction value. The estimated time will be communicated to you before confirming the transaction.
What is the maximum amount you can withdraw from Paypal to Mpesa?
It’s important to note that the maximum amount you can withdraw or top up follows the current M-PESA transaction limits, which are a maximum of KSh. 150,000 per transaction and KSh. 300,000 per day.