When Safaricom announced a collaboration with PayPal and TransferTo that allows M-PESA to PayPal transactions, I was one of the people who cheered loudly. This has been one of the services that a number of us that especially work online have been asking for. Yes, there are similar services available from banks but they don’t offer the same flexibility and seamlessness that M-PESA offers.

PayPal is great for receiving and making payments internationally, whether for compensation for professional work or to pay for online purchases. PayPal also tends to be one of the most secure forms of payment so I tend to use it for online shopping and paying for a hotel booking through platforms like Airbnb.

The M-PESA to PayPal service is also an opportunity for local businesses to widen their market with an international payment option as it will give them access to more than 210 million active PayPal users across the globe in up to 25 international currencies. Already, PayPal is used by more than 18 million merchants around the world.

To get started, you of course need to have both M-PESA and PayPal accounts. Here are some basics on how to use the service.

1. How do I link my M-PESA Account to PayPal? (Existing PayPal Accounts)

  • Enter your primary PayPal Account’s email address.
  • Successfully log on to your PayPal Account, click to agree to the privacy policy.
  • Enter the phone number registered for M-PESA
  • Accept terms and conditions
  • Enter the 4-digit confirmation code sent from Safaricom to the mobile number associated with your M-PESA account and click to confirm.

2. How do I link my M-PESA Account to PayPal? (New PayPal Accounts)

Visit the PayPal website at www.paypal.com then click on ‘Sign Up’ top right of the page and follow instructions.

  • Log in to your PayPal Account
  • Enter your M-PESA account phone number
  • Accept terms and conditions
  • Enter the 4-digit confirmation code sent from Safaricom to the mobile number associated with your M-PESA account.

3. How do I withdraw to M-PESA?

The Withdraw Service from PayPal allows you to withdraw funds from your PayPal account to your linked qualifying M-PESA account.

  • Enter amount to withdraw from your PayPal Account in USD and click ‘withdraw’
  • You will be redirected to a page showing the amount to be received in KES, exchange rate used for the currency conversion and an estimation of the transaction processing time
  • Click ‘Confirm’ to confirm and complete the Withdraw Transaction. You will only be able to withdraw up to the available USD balance amount in your PayPal Account.

4. How do I top up the account?

The top up service to PayPal allows you to top up funds from your qualifying M-PESA account to your linked PayPal account to shop online or make payments with PayPal.

  • Log on to the M-PESA PayPal web page (link) and select Top Up funds
  • Enter the amount to top up in USD and click ‘calculate’ to get the equal converted amount in KES. to be transferred from your M-PESA account. (Exchange rate used will be displayed on the same page)
  • Go to your M-PESA menu and Select ‘Lipa na M-PESA’ then ‘Pay Bill’ option
  • Enter Business no. 800088
  • Enter your phone number as Account No.
  • Enter the Amount in KES.
  • Enter your M-PESA PIN and Send.

5. What charges will apply for Withdrawal/Top up Service?

For withdrawal – 3% of the amount converted from USD to KES.

Top up – 4% of the amount you are sending to your PayPal account

Normal M-PESA charges apply for all other transactions

6. How long does it take to receive funds after withdrawal?

The funds will be processed to your M-PESA account in 2 hours to 3 calendar days after transaction confirmation depending on the value of the transaction.

7. How do I know when the funds have been credited to my account?

You will receive a confirmation SMS from M-PESA and an email from PayPal.

8. What is the maximum amount I can withdraw or Top Up?

Current M-PESA transaction limits apply. (Kes. 70,000 per transaction and Kes. 140,000 per day.)

To qualify your accounts and transact between the two services, please visit the M-PESA PayPal portal on https://www.paypal-mobilemoney.com/m-pesa.

I used the service to top up my PayPal account to pay for an online service and it was seamless. I am currently waiting on a payment for an international writing job and I can’t wait to see if the reverse works just as well. From what I’ve heard from fellow writers however, it’s also a seamless process.

mwendeBusinessNewsTechM-Pesa,PayPal,Safaricom,TransferTo
When Safaricom announced a collaboration with PayPal and TransferTo that allows M-PESA to PayPal transactions, I was one of the people who cheered loudly. This has been one of the services that a number of us that especially work online have been asking for. Yes, there are similar services...