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.
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:
- 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.
- 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.
- 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.”
- 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.
- A confirmation
code will be sent to your phone via SMS. Enter the confirmation
code.
- 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.”
- 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.
- Once
you enter the address details, you should click “Agree and Create
Account” at the bottom of the page to complete the process.
- 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.
- 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.
- 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:
- 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.”
- 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.”
- 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.
- To
link your credit/debit card, go to the PayPal website and click “Wallet”
at the top of the page.
- 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.
- 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.
- 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:
- First,
go to the PayPal-MPESA login website (https://www.paypal-mobilemoney.com/m-pesa)
and click “Get Started.”
- A new
window prompting you to connect your PayPal account will appear. Scroll to
the bottom of the page and click “Agree and Connect.”
- You
will be redirected to the previous window and requested to enter your
Safaricom phone number. Enter the number and click “Link your accounts.”
- After
that, you will receive a message on your Safaricom number with a
confirmation code. Enter this code and click the “Confirm” button.
- 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:
- First,
log in to your Equity Bank online portal (https://equityonline.equitygroupholdings.com/en/access/login)
or app.
- 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.
- Next,
enter the email address associated with your PayPal
account and click “Continue.”
- 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.
- 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.”
- You
will receive a verification code via SMS on your
registered phone number. Enter this code, and click “Verify.”
- 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.
- 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.
- You
will be redirected to the PayPal login page, where you should enter your
email address and password. Click “Login.”
- Once
logged in, click the “Withdraw from PayPal” button.
- 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.
- 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.
- 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.
- First,
log in to your Equity Bank online portal (https://equityonline.equitygroupholdings.com/en/access/login)
or app.
- Then,
select the 3 dots from the “My PayPal Accounts” section on the
account you want to withdraw funds from.
- A
pop-up menu will prompt you to select “Withdraw from PayPal.”
Select this option.
- 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.
- 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.
- First,
go to your MPESA menu and select “Lipa Na MPESA.”
- Then,
select the option for “Paybill.”
- 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.
- The
next step is to enter the amount you want to transfer and
then enter your MPESA PIN.
- Confirm
that the details are correct and click “Ok.”
- You
will receive a confirmation message from MPesa indicating
successful withdrawal.
- 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.