No More Financial Hassles for Kenyans – PayPal Collaborates with M-PESA

Kenyans now have a reason to smile after an announcement made today by Safaricom PLC, PayPal and TransferTo on one service that allows easy movement of funds between PayPal accounts and M-PESA accounts.

The move is set to boost eCommerce globally given that M-PESA customers can now link their PayPal accounts with the enabling them to easily and securely buy goods and services from merchants worldwide.

Furthermore, M-PESA customers can still receive and withdraw money from more than 140,000 agents across the country. The integration will also give Kenyan merchants the opportunity to boost their reach and grow their business internationally.

“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 eCommerce industry”, said Joseph Ogutu, Director – Strategy, Safaricom.

By real-time top-up of their PayPal accounts using M-PESA, customers can now make purchases and withdraw funds within a timespan of few hours to three days, depending on the transaction amount.

Apart from linking Kenyan businesses and shoppers to more than 18 million merchants around the world through PayPal, the new service will also allow local businesses to sell their goods and services to more than 210 million active PayPal users across the globe in up to 25 international currencies.

According to Efi Dahan, PayPal General Manager for the Middle East, Africa, and Russia, PayPal’s collaboration with M-PESA is part of the company’s long-term strategy to enable e-commerce and democratize financial services on the African continent.

“We are excited to bring the M-PESA mobile wallet and PayPal joint services to the Kenyan market, which makes it more convenient and secure to withdraw and add money to their accounts while participating in the global digital economy,” said Dahan.

“We are proud to have been chosen by these two world-class payments providers to bridge the gap between the services offered in developed countries with those available in emerging markets – which is the cornerstone of TransferTo’s mission,” said Peter De Caluwe, CEO at TransferTo.

De Caluwe noted that the service is a major milestone in the evolution of cross-border mobile payments, in that TransferTo’s technology is creating a fundamental link between M-PESA users in Kenya and PayPal’s global network, and seamlessly connecting Kenyan shoppers and businesses to the global eCommerce world.