Linking PayPal and Mpesa is easy and allows you to transfer money between your mobile money wallets. This process is not complicated, but it is important to remember some important details. First, make sure that both your PayPal and Mpesa accounts are active and linked to your bank account.
Limitations of PayPal’s partnership with M-Pesa
Many businesses in Kenya have benefited from PayPal’s partnership with M-PeSa, allowing them to send and receive money using one service. However, the partnership has its limitations. Among these are account restrictions and held payments. The following are some reasons why PayPal might not be a good choice for all Kenyan businesses.
The charges: Many people have expressed concern about the high transaction fees associated with PayPal’s partnership with M-PeSA. The company estimates that there are at least 80 similar services around the world. It is important to note that M-Pesa has been a success for many small businesses, and it has won awards from prestigious organizations including the Economist.
Payment time: While PayPal’s partnership with M-PeSa is convenient and secure, it is important to note that the process is not instantaneous. The transfer time can vary from four hours to three days, depending on the amount of money being transferred. Moreover, the service will incur Forex charges and requires you to have an Equity Bank account.
The partnership between PayPal and M-Pesa will offer a more convenient, seamless transaction experience to M-PESA users in Kenya. However, many freelancers still face difficulties in accepting payments online. Safaricom’s partnership with PayPal will help these people overcome this problem. This new partnership will also help Kenya’s e-commerce sector grow, which is experiencing a rapid expansion.
Limitations of PayPal’s mobile money service with M-Pesa
PayPal’s mobile money service with M-PESA is a great way to transfer money to other people, but there are some limitations. Currently, the service only allows users to deposit and withdraw funds in KSH and USD. Many people want to use other international currencies.
In order to avoid delays, users should be careful when using this service. The names on their PayPal and M-PESA accounts must match to avoid errors. It is not always easy to change this information and some users have been known to delete their accounts to avoid this problem. This may result in account bans. Another limitation is the time it takes for funds to appear in M-PESA. In most cases, it takes two hours to three business days to reflect in the user’s account. However, if you’re making a large transaction, this can take longer than a day.
PayPal’s new partnership with Safaricom offers Kenyans the ability to send and receive money online. With this partnership, Kenyans will be able to transfer money from PayPal directly to their M-PESA accounts. The move will also help Kenyan businesses and freelancers sell to customers across the globe.
One limitation of PayPal’s mobile money service with M Pesa is that it limits the number of payments a person can make each day. Users can only send KES 150 000 per day, and cannot send more than KES 300,000. However, PayPal is still a fully functioning and legal service in Kenya and many people use it for their online payments. Users should follow the terms and conditions of service and keep their passwords safe.
The mobile money transfer service, M-Pesa, is Kenyan-based and has been in operation since 2007. It is now available in 10 other countries. In 2014, M-Pesa processed $19 billion in money transfers. Paypal, on the other hand, is an American company that also facilitates online payments. Since its establishment in 1998, Paypal has grown to operate in 202 markets and process $272 billion in payments per year. In 2015, Paypal and M-Pesa announced a partnership that would enable M-Pesa users to send and receive money through their Paypal accounts. This was a big win for M-Pesa, as it expanded its service to Paypal’s vast customer base. However, the partnership has not been without its challenges.
Some of the issues that have been reported include:
– Delays in transactions: there have been reports of transactions taking up to 24 hours to be processed.
– Exchange rate: Paypal converts money from Kenyan Shillings to US dollars at an unfavorable exchange rate.
– Fees: Paypal charges a fee of 3.9% + $0.30 for every transaction.
– Limitations: Paypal places limits on the amount of money that can be sent and received.
These issues have led many to question whether Paypal is the best choice for Kenyan businesses. There are other mobile money transfer services that are available, such as WorldRemit and TransferWise, that may be more suitable.