PayPal users can now move funds easily to M-Pesa accounts
PayPal users can now seamlessly move money to their MPesa accounts following an integration that will ease movement of funds between the two platforms.
To link the M-Pesa and PayPal accounts, users will be required to register and log in with their PayPal credentials at www.paypal-mobilemoney.com/m-pesa to start using the service.
An SMS confirmation code will be sent to the user’s phone to complete the registration and the linking of the two accounts.
The integration comes after M-Pesa released an updated API in 2017 that allows businesses and online payment platforms to easily integrate with M-Pesa.
A statement from Safaricom states that ‘qualifying’ M-PESA customers in Kenya can link their PayPal accounts to their M-PESA wallets, enabling them to easily and securely buy goods and services from merchants around the globe.
Safaricom’s Director of Strategy, Joseph Ogutu said this development injects speed and convenience, “through which more entrepreneurs and consumers can benefit from the growing eCommerce industry.”
The PayPal – M-Pesa tie-up will likely be a blow to Equity Bank which has been the only local merchant for the international payment getaway.
According to its 2017 end of year Financial Results, Equity Bank recorded a 132 percent increase in the volume of transactions across its international money transfer platforms. 70 percent of income generated from online transactions from the diaspora came from PayPal.
Equity – PayPal users in Kenya increased by 47 percent between December 2016 and March 2017, indicating the increasing number of Kenyans receiving and sending money through PayPal.
While announcing new tiered PayPal to Equity Bank withdrawal rates, Equity Bank Group CEO Dr. James Mwangi had said online transaction fees will continue to be a key revenue stream for the bank.
The new rates charges users between 1percent and 1.5 percent depending on the amount withdrawn.
PayPal’s volume of transaction increased significantly in the past year as well. PayPal withdrawal time was last year reduced from 8 days to 3 days.