PayPal remains one of the safest methods to pay and receive money online. However, Paypal integration in Kenya has been slow for decades because of the hustle of withdrawing funds from PayPal. It took days to get the funds through the bank. Agents have been charging a high price for faster conversion services.
Today, it takes only two hours to withdraw funds from PayPal to Mpesa. This means that Kenyan entrepreneurs can conduct business across borders without worrying about delayed payments. In addition, entrepreneurs are saving on the transactions charges for the transfer.
Whether you sell products or services online, you can follow this guide to link the two accounts. First, we look at the requirements and then review the process.
Requirements to Link PayPal to Mpesa
1. An active PayPal account.
Registering a new account is simple and fast. Visit the official PayPal website and sign in as a new user. Provide accurate personal information in the sign-up form and then wait for confirmation. The service offers a simple guide to sign up. You can add your bank account but it is not necessary at this point.
One thing to note when opening a PayPal account is that the names must match the names used to register your Mpesa account. You cannot link two accounts registered in different names. Hence, if you already have an Mpesa line, use the same names for your PayPal account.
2. A verified Mpesa account
It is easy to register your Safaricom line for Mpesa service. You can use the self-service menu on your phone or visit an authorized Safaricom dealer. If you are in business, chances that you already have an Mpesa line.
3. A phone and a reliable internet connection
You need the internet to access your Paypal account and link it to Mpesa. The website sends a confirmation to your Safaricom line, and hence the need to keep your phone on.
How to Link PayPal and Mpesa accounts
Step 1: Open https://www.paypal-mobilemoney.com/m-pesa on your browser.
The link is accessible on most browsers. You will immediately land on a page that gives you a brief guide on how PayPal-Mpesa works and a button to link the two accounts. You can watch the short video clip to understand the service. The page also displays the terms and conditions for using the service and further details on PayPal and Mpesa.
We highly recommend PayPal integration in Kenya to entrepreneurs that want to attract international clients. However, you need to understand the terms and conditions that govern online transactions. Most people ignore the terms and only visit the page when a problem arises. Understand the two services before you proceeding, especially if you are just starting e-commerce.
Step 2: Click on the “Get Started” button
The link prompts you to either log in with your registered PayPal Account or to sign up for a new account. Enter your email address and password to proceed.
Once you successfully log into your PayPal account, you land on a new page that explains the service further. Again, we advise that you read the privacy terms before you click on agree.
Step 4: Provide your Mpesa number
If you agree to the terms, you will be prompted to give your Mpesa number on a new page. If you used the similar names for the two accounts, you will automatically get a confirmation on your phone. Keep your phone on until you complete the process.
If the names do not match, the linking process will fail. You will be directed to try again or contact PayPal for assistance.
Step 5: Enter the confirmation code
The final step is to enter the four-digit-code in the dialog box. The two accounts are now linked. The next time you access the site, you will be prompted to withdraw to PayPal or Top Up to PayPal.
Important Facts to Note about the Service
1. You will incur a 3% conversion fee for every amount you withdraw and 4% conversion fee of the amount you top up. Normal Mpesa charges apply after you transfer the amount your Mpesa account. Check the charges on Safaricom’s website or with the nearest agent near you.
2. The service allows you to transact in USD and KES only. If you receive funds in other currencies, you must convert them into USD before withdrawing to Mpesa.
3. It takes 2 hours to three days to get your funds on Mpesa after you confirm your withdrawal. The duration varies with the transaction value. The service gives you the estimated time for the withdrawal before you complete the process. Large amounts often take more hours to withdraw. Top ups are a bit different. Most of them are processed in real time but it may take up to 4 hours. A confirmation message follows every transaction from PayPal and Mpesa.
4. The current Mpesa limit that applies to the service is 140,000 KES per day and 70,000 KES per transaction. The limits may change as PayPal and Safaricom adjust their terms
5. It is impossible to cancel a transaction after you confirm. Check the details of the transaction before clicking the confirm button.
6. The service requires the names of both accounts to match. This means that you cannot send money to another Mpesa account directly from PayPal.
The service gives business owners more reasons to consider PayPal integration in Kenya and across borders. Both services are safe and reliable but you must do your part and keep your accounts secure. Do not share your passwords or PIN with unauthorized users. It is advisable to limit access to PayPal account to one or two members in your finance department.