Kenyan traders and online shoppers will now be able to receive money from PayPal users across the world directly into their Safaricom M-Pesa accounts in real time.
This is thanks to Safaricom’s new partnership with global online payments platform PayPal and TransferTo, a cross-border mobile payments network.
The new service will allow movement of funds between M-Pesa and PayPal accounts, enabling users in Kenya to load their PayPal wallets via M-Pesa PayBill number 800088.
Safaricom said in a statement this will allow PayPal users to withdraw their funds with ease from its more than 148,000 M-Pesa agents around the country, marking another world first for the giant telco.
“M-Pesa’s collaboration with PayPal will open up global marketplaces and the global economy to millions of Kenyan and Kenyan-based businesses and individuals.
“Beyond money transfers, this development ushers in a new era of speed and convenience beyond borders, as we work towards innovating robust platforms, through which more entrepreneurs and consumers can benefit from the growing e-commerce industry”, said Joseph Ogutu, Safaricom’s director for strategy.
The new service, in addition to boosting Kenyans’ access to international e-commerce, will see Safaricom go for Equity Bank’s lunch as far as remittances are concerned.
Before the game-changing partnership, PayPal withdrawals in Kenya were only possible through Equity Bank.
The transaction between PayPal and M-Pesa is being powered by TransferTo, a B2B Cross-Border Mobile Payments Network for emerging markets.
The money transfer will, however, not be instant, meaning users will not see the amount reflect on their M-Pesa accounts until after a certain period, between a few hours and up to 3 days, depending on the amount transferred.
There will also be no transaction charges on withdrawals but Forex charges will apply. Deposits to PayPal via Mpesa will attract Paybill transaction costs.
All transactions are subject to M-Pesa transfer limits, meaning one can only transact a maximum of Sh70,000 per transaction with a daily transaction limit of Sh140,000.
The new service has been long overdue and will come as a relief to many as more people turn to online shopping as their appetite for convenience grows.
Here’a video detailing how to use PayPal Mobile Money Service with M-PESA: