There are various ways to withdraw money from your PayPal account, one of which includes using M-Pesa. Yes, you can withdraw money from your PayPal wallet to your M-Pesa account which can take up to 2 hours —however, time varies depending on how much money you’re withdrawing. So unlike the bank option which takes between 3 to 7 business days, with M-Pesa, it is a few hours and your money is already on your M-Pesa account.
M-Pesa is a mobile banking service that was introduced by Vodafone and Safaricom that allows users to store, receive, and transfer money through their mobile phones. The service is widely used in Kenya and has since expanded to Afghanistan, DRC, Egypt, Ghana, Lesotho, Mozambique, South Africa, and Tanzania.
PayPal, on the other hand, is an online payment system that supports online money transfers and serves as an electronic alternative to traditional paper methods such as checks and money orders. With PayPal, you can make purchases online with participating stores, securely send money to your clients or friends and family as well as receive money from people.
To withdraw money from PayPal to M-Pesa you will use the PayPal Mobile Money Service with M-PESA, a money transfer service for PayPal and M-Pesa customers, enabling joint customers to move funds between their own accounts. The service is provided by Thunes in partnership with Safaricom and PayPal. Thunes is a B2B mobile payment network connecting financial institutions and mobile operators globally.
In order to use the PayPal Mobile Money Service with M-PESA, you need to have a qualifying Kenyan PayPal and M-Pesa account. When registering to use this service, you’ll then link your two accounts and will be able to move your money from one to the other.
NOTE: The names should be corresponding on both accounts —meaning, the name on your M-Pesa account should be the same name on the PayPal account otherwise the two accounts won’t be linked.
Before you proceed to transfer money from your PayPal to M-Pesa using this service, you have to register first.
To do so;
- Open https://www.paypal-mobilemoney.com/ and in the top right corner, click ‘Log in’ and enter your PayPal login details.
- Enter your M-Pesa account phone number.
- After submitting your account details, Thunes, on behalf of M-Pesa, will send you a 4-digit verification code to the mobile number associated with your M-Pesa account.
- Please enter the code to confirm and complete the account linkage.
That’s it! You can now withdraw money from PayPal to your M-Pesa account;
- After completing the registration, click “Withdraw”.
- Your available balance will be displayed. You will only be able to withdraw money up to the available balance shown in your PayPal account.
- Enter the amount you would like to withdraw from your PayPal account.
- You will be redirected to a page showing the amount to be received in Kenyan Shillings (KES), the exchange rate used for the currency conversion, and the estimated transaction processing time.
- Confirm and complete the withdrawal of funds. (once you’ve confirmed a withdrawal, you won’t be able to stop or reverse it)
- Once you’re done with the withdrawal, your money will reflect on your M-Pesa account. You can then go to a nearby mobile money agent to withdraw the money from your M-Pesa account.
Please note that before withdrawing, your balance has to be in USD($). If you hold a balance in your PayPal account in a different currency, please log in to your PayPal account and convert the money into USD($). To convert the funds, once logged in to your account, go to your “Manage Currencies” section in your PayPal account.
It is also worth knowing that there are daily transaction limits. Transactions are subject to the daily limits as set by PayPal and M-Pesa. Current M-Pesa transaction limits are KES150,000 per transaction and KES300,000 per day.