If you are looking for an easier way to access and get PayPal Money To M-PESA, then this guideline is for you. Bear in mind, that a few years ago, PayPal together with M-Pesa saw a new partnership for their customers. So that their users can easily transfer money between the two platforms. Today, we know this service as PayPal Mobile Money Service if you may.
Eventually, this fundamentally changed the digital payments world, especially in Kenya. Payers in Kenya, on one hand, can now make payments to M-Pesa registered mobile money accounts easily. Whilst, using their balance, bank accounts, and credit cards. On the other end, M-Pesa users can quickly top up their PayPal accounts for online money transaction services.
Finally, this means, that in Kenya you can now move funds between your PayPal and M-PESA accounts (your money, your choice!). Don’t have a PayPal account yet? Well, you can sign up for free — get going right away — and start making online transactions through PayPal to M-Pesa and vice-versa, wherever you are. But, how does PayPal Money To M-PESA really work?
Well, lucky you! Today, we’ll show you how to get started with both PayPal and M-PESA online money transfer service solutions. We’ll show you how to link PayPal to the Mpesa service. In addition to step by step how to link PayPal with Mpesa and top up PayPal’s accounts from M-Pesa. As well as how to withdraw money from PayPal to your M-Pesa account.
How PayPal Services Work
First of all, there are no fees for making purchases online with retailers that accept PayPal as long as there’s no currency conversion involved. There is a 3 percent or 4 percent foreign transaction fee for purchases made in a foreign currency. What if you send money to or receive money from friends and family for personal reasons, and not for any commercial reasons?
In that case, PayPal considers this a personal transaction. PayPal has a special “Friends and Family” tab you can click when making personal transactions. Some of these transactions attract fees while others don’t, mostly based on where you’re drawing the funds from and where you’re sending them.
If you use your PayPal balance, bank account, or Amex Send™ Account, there is no fee for a domestic personal transaction and a 5 percent fee (between $0.99 and $4.99 USD) for an international transaction. If you send money using a debit or credit card, you’ll be charged 2.9 percent if it’s domestic and 5 percent if it’s international, plus a fixed fee as well.
The fixed fee varies depending on your country ($0.30 USD for payments originating in the U.S.). Is there a fee to receive money through PayPal? Generally speaking, no. It’s free to receive money from a friend through PayPal as long as there’s no currency conversion involved.
How To Create A New PayPal Account
There are some other fees you might encounter when using PayPal. While there’s no fee to transfer your PayPal account balance to a local account, you’ll have to wait for the funds to go through. If you want instant access, you’ll have to pay a 1 percent fee. In addition, drawing a check from your PayPal account comes with a $1.50 fee per withdrawal.
Before you open a PayPal account, you need to decide what kind of account you want. PayPal offers two types of accounts: personal and business.
PayPal Personal Account
A personal PayPal account is the most common account for individual use. It’s all you’ll need to send and receive money or to use PayPal to make purchases online. This account also lets you access your purchase history, link new bank accounts, and add credit cards to your account.
PayPal Business Account
PayPal also offers accounts that allow businesses to accept PayPal payments online as well as credit cards and debit cards online or in person, even if your customers don’t have PayPal accounts. Service-based Businesses and professionals can also send invoices to clients and receive PayPal online payments securely.
You can create a PayPal account from your computer or mobile browser or directly through the PayPal app.
Here are the steps you’ll need to follow:
- Go to paypal.com or download the PayPal app from the App Store or Google Play.
- Click the blue “Sign Up” button.
- Select “Personal Account.”
- Add your phone number and you’ll receive a text with a security code to enter on the next screen.
- Enter your legal first and last name, email address, and a secure password.
- Finally, add a credit card, debit card, or bank account to your PayPal account.
There are several ways to send money via PayPal. The method you choose depends on who you’re sending money to, for what reason, and what medium you want to use.
How to send money via PayPal to friends and family
Whether you want to send money to a roommate for your share of the rent or shower your niece with cash on her birthday, follow these instructions for paying friends and family via PayPal:
- From the PayPal app or your online PayPal account, hit the “Send” button.
- Enter the name, email address, or phone number of the person you want to send money. You can also scan your friend’s PayPal QR code for a quick start. If the person doesn’t already have a PayPal account, they’ll be able to claim the money by making a free account.
- Enter the amount you want to send. You have the option to add a message, which could be a useful reminder to you and the recipient of what the money’s for. For example, you could enter “July rent” or “Happy birthday, Georgia!”
- You’ll be asked what your PayPal online payment is for: “Friends and Family” or “Goods and Services.” The latter triggers a fee that the receiving account has to pay, so make sure you select the right option.
How to send money via PayPal for products and services
Let’s say you hire a landscaper to mow your lawn and you want to use PayPal to pay the bill, or you run out of cash at a flea market and want to buy something from a vendor who accepts PayPal. This is how to send money for products and services via PayPal:
- If the vendor has a QR code, hit “Scan/Pay” in the app to get started.
- Otherwise, from the PayPal app or your online PayPal account, hit the “Send” button. Then enter the name, email address, or phone number of the person you want to send money.
- Enter the amount you want to send. You can add a note (e.g., “lawn mowing” or “Antique dresser”) to remind the merchant and yourself what the payment is for.
- PayPal will ask you whether you’re sending money to “Friends and Family” or paying for “Goods and Services.”
Getting paid through PayPal
Whether you’re wondering how to receive money on PayPal from a friend, how to receive PayPal payments from customers, or how to create an invoice on PayPal, getting paid through PayPal is simple. Keep in mind that there are different merchant fees involved with some payment options. So make sure you understand the best choice for your situation.
- From the PayPal app or your online PayPal account, hit the “Request” button.
- From here you can choose from the following options:
- Enter the email or mobile number of the person paying you
- Create a PayPal.Me link to share
- Split a bill
- Create an invoice
- Your friend can also initiate a payment through PayPal to send you money by entering your email or mobile number.
- When someone sends you money, you’ll receive a notification via email and/or the PayPal app. The money is deposited into your PayPal account.
- You can keep the money in your PayPal account to apply it toward future transactions or transfer it to your bank account.
Linking PayPal To M-PESA Plus The Account Top-Up Process
In reality, mobile money services are being deployed rapidly across emerging markets. More so, as the main key toolkit to further the goal of financial inclusion. Financial inclusion is instrumental in lifting the underserved population out of poverty — and in driving economic growth. In 2019, the number of globally registered mobile money users surpassed the 1 Billion mark.
There is nowhere else in the world that moves more money on mobile phones than Sub-Saharan Africa. While there are only five bank branches per 100K people as of 2019, there are 1.04 billion registered mobile money accounts in Sub-Saharan Africa. In Kenya, Ghana, and Zimbabwe, over 60 percent of adults have mobile money accounts.
Of course, sending money to Africa through traditional channels has always been expensive. The cost of sending money through traditional channels to Africa is one of the most expensive in the world. Perse, with an average cost of 9.3 percent4. Back in 2018, the cost of sending $200 to the Sub-Saharan African region averaged 9 percent if we may add.
In the southern African subregion, the average cost was 18.7 percent alike — almost three times higher than the global average according to the World Bank. Fortunately, with both M-PESA and PayPal service solutions, you are able to move your money seamlessly all around the world. Just link your M-PESA and PayPal accounts and enjoy a world of possibilities.
Why use both PayPal and M-PESA service solutions:
- Secure Transactions: When you use your debit or credit card to pay for things online, merchants can sometimes access your payment information. PayPal provides an extra layer of protection by ensuring that merchants never see your sensitive data. PayPal also uses a number of features to keep accounts secure, including end-to-end data encryption, optional two-factor account logins, and email confirmations for transactions.
- Access your funds quickly: Got paid through PayPal? That’s great! You can easily withdraw the funds to your M-PESA, and use them any way you like. Need to pay your bills? No problem — your latest PayPal payment can be waiting for you on your M-PESA. It’s that easy!
- Easy And Convenient: PayPal is now the fifth most accepted payment option after Visa, Mastercard, American Express, and Discover and is available at millions of stores online. Have you ever wanted to make an online purchase but couldn’t because you didn’t have your credit card handy? You can use PayPal to make a payment via cards that are linked to your account, without having to retype your card numbers. All you need to do to make a purchase via PayPal is memorize (or save) your PayPal login information.
- Shop around the world: Why limit your shopping experience? It’s now easier for you to top up your PayPal account, and shop around the world. Just transfer your M-PESA balance to your PayPal account, and be ready to shop anywhere, anytime.
Creating a PayPal account is free and online purchases and most personal transactions are also free. PayPal does, however, charge fees for certain types of transactions. So, is PayPal really a free service to use? Well, let’s learn more…
Related Source: Pochi La Biashara | PayBill | Lipa Na M-PESA
Forthwith, the Safaricom Paypal Services Integration allows its M-Pesa customers to transfer money worldwide. Whereas, this service was first only offered to users in Kenya with registered M-PESA accounts, Google accounts, and Android devices. With time, the partnership has gone global, particularly, via the M-PESA Android App and M-PESA iOS App versions.
Surprisingly, this allows its mobile users/customers to send and receive money sent through their Paypal Accounts. According to a guideline from the Nasonga team, getting started and linking PayPal to Mpesa together (PayPalMpesa) is a very easy process. Whereby, all you’ll need is to have an active PayPal account and an active Safaricom account using your mobile number.
Forthwith, as soon as you register, in order to link your PayPal account to M-PESA, there are a few steps that you’ll need to follow in order to get started — the right way as per the PayPal team and the mobile carrier requirements.
The simple steps to link PayPal and M-PESA accounts:
- Visit PayPal’s M-Pesa page by typing in https://www.paypal-mobilemoney.com/m-pesa.
- Log into PayPal using your PayPal username and password
- Agree to PayPal’s terms and conditions for the service.
- Add the M-PESA number you want to link with PayPal
- PayPal will send an SMS verification code to your M-PESA number
- Key in the verification code PayPal sent you on your M-PESA account and complete the linking process
- You have completed the process of linking PayPal to Mpesa!
Now that you have an idea of how to link PayPal to M-PESA, let’s move on to the next stage. Whereby, as we aforementioned, you can now easily move your PayPal Money To M-PESA by withdrawing your funds straight into your mobile phone. More so, at the comfort of your office or house just a few steps from any corner of the world. Sounds great, right?
So, how does the M-PESA to PayPal top-up process really work? Well, now that you have linked PayPal and M-Pesa, you can use the money transfer service solution to top up your PayPal account at any given time.
The main steps to transfer funds from MPesa to your PayPal account:
Step #1: This is optional; visit the PayPal MPesa link: https://www.paypal-mobilemoney.com/m-pesa and log in. I always use their currency converter to know how much I should top up in Ksh and what it will be in USD. Also, on this page, you will find the PayPal Pay Bill Number 800088, which I think is handy as you might forget this number.
Step #2: Open M-Pesa on your phone, select “Lipa Na Mpesa, ” and then Pay Bill. Use the PayPal Mpesa Pay bill number 800088 and your phone number as the account number.
Step #3: Enter the amount you will load to PayPal and submit. It’s successful and instant! You’ll receive a message from Safaricom confirming the transaction’s success. On the other end, PayPal will send you a confirmation email too.
Note that; if you use a different number, the transaction won’t go through, and the usual M-Pesa Charges will also apply.
PayPal Money To M-PESA Account Funds Withdraw Through Thunes
For your information, Thunes is the web application platform that initiates the transfer of funds to M-PESA from PayPal and vice versa. Basically, the Thunes application helps power payments for the world’s fastest-growing businesses. With a single, simple connection, your business and customers can send you payments — get paid from all over the world, instantly!
Access the world’s fastest-growing economies, as well as the biggest ones. Suffice it to say, it also helps you/your customers make and accept payments, simply, securely, and fast – anywhere in the world. One integration with Thunes makes cross-border payments and collections as simple as local money transfers. Send every kind of payment to over 130+ countries.
The Thunes App Key Features Are:
- Cross-Border Payments: Tap into robust, real-time remittance solutions designed for every kind of business.
- Business Payments: A reliable, visible solution to enable cross-border trade for your customers.
- Mass Payouts: Issue mass payouts to your global partners in a fast and secure way.
- Virtual Accounts: An innovative service making it simple to issue fully compliant virtual accounts.
That said, you can learn more about how Thunes work in detail. On that note, the next time you are withdrawing your PayPal Money To M-PESA, always remember that you are using/interacting with Thunes in one way or another. And now, with that aside, it’s time to learn how you can move your PayPal Money To M-PESA in a very few and simple steps below.
After you have linked your PayPal account to M-Pesa, you can initiate a request for withdrawal from PayPal to the M-PESA account at any time. Whereby, they will, in return, convert the amount you wish to withdraw — from USD to KSH — right away. Then, thereafter, if you are fully satisfied and ready, they’ll transfer the funds directly into your Safaricom M-PESA account.
The simple steps to move funds from PayPal:
- Go to https://www.paypal-mobilemoney.com/m-pesa
- Log in with your PayPal user details.
- Select Withdraw from PayPal
- The next screen will show you the available PayPal balance in your account.
- Enter the amount you would like to withdraw and click. Continue to Withdraw.
- They will send the money to your M-Pesa account in a few minutes.
The maximum amount per transaction is 150,000 KES; you can’t withdraw any amount larger than this. What about Xoom?
Well, back on Dec. 9, 2020 (PRNewswire) in San Jose, California, — Xoom, the PayPal money transfer service, announced that the company’s customers in the US, UK, Canada, and Europe can now send secure and convenient money transfers directly to mobile wallets in key markets across Africa with a focus on the underbanked segment. So, what is Xoom all about?
What Xoom Money Transfer Service Is All About
Technically, Xoom is a pioneer in digital remittances. It’s a fast and secure way to send money, pay bills and reload phones for loved ones in over 160 countries globally. These remittances serve as a lifeline for many people around the world and are used to pay for things like utility bills, healthcare, education costs, and emergencies.
The largely cash-based system of sending money to Africa via traditional channels can be full of paperwork, high fees, standing in line, and an ever-present uncertainty of when, and if, the money will arrive when it’s needed. By providing fast and secure payment options for customers to seamlessly send money to Africa. While using just their mobile phone device.
In that case, you too can give Xoom a try and send money to Africa with it in a few simple steps. All you’ll need to do is download Xoom’s mobile app on Android and iOS or go to Xoom.com for more instructions. And then, you can set up an account easily or log in using PayPal credentials. This new service expands Xoom’s offerings in Africa as the current choice.
Be that as it may, according to Julian King, Vice President, and General Manager, Xoom: They wanted to help bring down the cost and speed up the process to boost financial inclusion. Eventually, something they have fulfilled.
Related Toolkit: Stripe | No #1 Internet Businesses Online Payment Platform
In nutshell, both M-PESA Thunes and PayPal Xoom are helping to expand and improve the financial health of millions of people in the African continent. To enumerate, these new and unique service solutions have given the companies a great expansion, in terms of offering to send money to mobile wallets. May it be from Kenya, Burundi, Cameroon, Ghana, etc.
As well as the country interiors of Madagascar, Malawi, Mozambique, Rwanda, Tanzania, Uganda, Zambia, and Zimbabwe — with plans to include more markets in 2022 and beyond. Uniquely, Xoom already enables money transfers for cash pick-up, direct bank deposits and mobile reloads to 41 countries in Africa. Meaning, that with Xoom, there’s now a better way.
And, that’s of sending money to Africa. Keeping in mind, that sending money through traditional channels has always been expensive. Significantly, Xoom is helping to bring down the cost of sending money — with average costs of sending funds to mobile wallets in select African markets ranging from 2-4 percent of the transaction.
PayPal Alternatives To Consider
PayPal has remained at the forefront of the digital payment revolution for more than 20 years. By leveraging technology to make financial services and commerce more convenient, affordable, and secure, the PayPal platform is empowering more than 350 million consumers and merchants in more than 200 markets to join and thrive in the global economy.
For more information, please visit the official PayPal website (paypal.com) to learn more about it in detail. But, if you’ll want to consider other alternatives to PayPal money transfer service solutions, you can consider these.
Venmo is a convenient mobile app that doesn’t charge transaction fees when you request money. The company makes money by charging fees for sending money via credit card and for instant transfers. Standard transfers are free. Venmo has a unique social networking feature.
2. Cash App
Cash App enables people to send money and make online and in-store purchases from their phones. You can load your Cash App with funds from a bank account, debit card, or credit card. If you don’t have a bank account, you can sign up for the Cash Card debit card, which is tied to your app’s balance. You can use the debit card, or its e-wallet version, wherever Visa is accepted.
Just like its competitors, Skrill lets its users easily send money. Its biggest differentiator is that the tool doesn’t charge foreign transaction fees to send money abroad from the United States. Just make sure to use your account regularly to avoid a $5 inactivity fee. Skrill offers its users The Skrill Visa® Prepaid Card with an e-wallet option. The card has a loyalty program that lets you earn rewards for every purchase.
Remitly is yet another online remittance service based in Seattle, United States that offers international money transfers to over 135 countries. It was founded in 2011 by Matthew Oppenheimer, Josh Hug, and Shivaas Gulati and became publicly traded on the Nasdaq exchange in September of 2021. Send money online faster and more securely from the United States with Remitly, and discover its great exchange rates and low transfer fees.
Equally important, WorldRemit is also another great alternative to consider. It’s a digital payments service that provides international money transfer and remittance services in more than 130 countries and over 70 currencies. It was founded in 2010 by Ismail Ahmed, Catherine Wines, and Richard Igoe. Join almost 8 million customers sending and receiving money with WorldRemit. Sign up & send it to Kenya. 95% of WorldRemit transfers are ready in minutes with 24/7 Customer Service. Low-cost money transfer, Transparent exchange rate, Fast and Low Cost, etc.
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