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Paypal to M-pesa services in Kenya are relatively new(half a decade) and growing at a very high rate, owing to the demands of the many people working online. As more people discover it every passing day, several questions arise regarding its general operation, the safety of the money transacted as well as how it compares with the other methods of withdrawing from PayPal. Here are the answers of some of the frequently asked questions:

How do Paypal to Mpesa agents Operate?

The service providers promise to help you withdraw money from your PayPal account to your M-pesa. In essence, the money is not withdrawn as such. The service provider will not access your PayPal account. The transfer will not be from PayPal to M-pesa either. What basically happens is that you transfer your $$ from your PayPal account to that of the service provider. It maybe through the use of an invoice or sending the dollars directly to the agent’s account. The dealer will then send you an equivalent amount through your M-pesa, after deducting the commission and relevant transaction charges.

How does it compare to other methods?

When we talk of other methods, we’re mostly referring to Equity Transfer and Payoner card. We mostly compare the various modes of PayPal withdrawal using 2 parameters. Time and cost… As far as time is concerned, how long are you willing to wait for your money? For instance, the Equity Bank withdrawal process could take up to 8 business days to finalize. That is almost 2 weeks. If you have bills to pay, it’s unlikely that you’re willing to wait for that long. In addition, you have to be a holder of an Equity Bank account. If you’re in a position to wait for the specified period, Equity will give you higher rates per dollar compared to the PayPal to M-pesa service providers. The transaction charges are also lower. They charge 1.5% of the total amount withdrawn.

The Payoneer card gives you a virtual US account. You can then click on ‘withdraw’ on your PayPal account and transfer the funds to the card. If you’re a beginner, however, you may not find this option very viable to begin with. PayPal does not allow linking new Payoneer cards anymore. After the online application process, the card takes up to one month to arrive. Don’t you need a reliable withdrawal method in the mean time? The card also requires a $30 activation fee as well as other fees for maintenance and each ATM withdrawal. Unless you’re transacting large amounts, a Payoneer card might work to your disadvantage.

The actual withdrawal must be done at MasterCard branded ATMs. Some banks do not accept use of Payoneer at their ATMs. If you’re in a rather remote area, you may find yourself having to travel long distances to the ATM. Ultimately, PayPal to Mpesa service comes out as the most convenient.

How much does it Cost?

The transaction charges of PayPal to M-pesa services vary from one PayPal to M-pesa agent to the other. The costs are affected by the fluctuations of the dollar, M-pesa transfer fees and the dealer’s commission. Currently, you’re likely to get a flat rate of Ksh 78-85 per dollar. Remember that the dollar exchange rate has hit and exceeded the Ksh 90 mark in the recent past. This is good news for those who work online, but no one knows how long it will last. The flat rate can decrease any time when the exchange rate drops to the normal values. Remember other sectors of the economy suffer with such exchange rates, and it may be only a matter of time before the exchange rate is back to the 80s bracket.
What are the Pros and Cons of Paypal to Mpesa?

As we have seen before, the services are synonymous with convenience. You can withdraw your money from whichever corner of the country, at any time without having to leave the comfort of your house. This saves you time and energy which you can use to do more work.

On the other hand, the business has been infiltrated by cons that thrive through milking naïve newbies off their hard earned $$. Since the entire transaction is carried on online, it may be hard to find a form of redress and quite a number of people have lost money to these cheats. They mostly use fake accounts, making it hard to figure out their real identity. If you’re new, ask for recommendations before you entrust anyone with your $$. Be wary of people with abnormally high rates or those insisting on inbox conversations. Should you be unfortunate to be conned though, ensure that you alert the rest to avoid the culprit.

How can I Identify a Genuine service Provider?

One of the easiest ways to find a reliable dealer is to ask for recommendations. If you work online, chances are you’re a member of various Facebook groups bringing together article writers, academic writers or those doing transcription. Ask around in these groups and you’ll get a number of names coming up with multiple recommendations. Among these, you can carry out your research and pick your favourite.
Legitimate service providers have seasoned accounts and use their real names. They’re also likely to have a real profile picture as opposed to an animation or something equally vague. A genuine PayPal to M-pesa service provider should be comfortable answering your questions publicly. Before going to inbox for further talks, be sure to have engaged an agent through a public post. There are those who have gone ahead to invest in websites complete with PayPal to M-pesa calculators; one more reason why you should trust them. Their commitment to offering quality service sets them apart…

Will PayPal to M-pesa services last?

If the developments of the last couple of months is anything to go by, then these services are here to stay. More and more freelancers are now depending on PayPal to Mpesa agents to withdraw their money. Even those receiving money from family members abroad that previously used services such as Western Union now have an alternative. With dealers investing all they can to offer superior services, you can rest assured that PayPal to M-pesa services are heading to the next level. Happy freelancing!




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