PayPal M-Pesa In Kenya 2024/2025: Linking, Withdrawals, Deposits &Fees

Joseph Wenani
15 Min Read

We live in an age where technology is advancing so fast, and thanks to that, we have seen the rise of financial giants like M-Pesa and Paypal. From these, Paypal and Mpesa have come together to enable cross-border Payments. This partnership, hailed as a significant milestone, not only simplifies the complexities of digital transactions but also bridges the gap between local and international financial activities. For you and me, understanding the updated Safaricom Mpesa rates and tariffs for 2024/2025 is not just beneficial—it’s essential for anyone looking to navigate the nuances of digital finance with ease and efficiency.

In this article, I aim to provide you with all the necessary details on PayPal M-Pesa, from registration and linking processes to understanding the intricacies of withdrawals, deposits, and the associated charges. 

Let us now get started.

PayPal M-Pesa Registration and Linking Process

The integration of PayPal and M-Pesa in Kenya marks a significant leap towards financial inclusivity, offering users a seamless way to engage in local and international transactions. To harness the full power of the Paypal and Mpesa partnership, it is a requirement that you get registered and link your Mpesa phone number to Paypal. Here is how to go about it.

Step-by-Step Guide to Creating a PayPal Account

Creating a PayPal account in Kenya is your first step towards leveraging the M-Pesa service. Here’s how to get started:

  1. Visit the PayPal Sign-Up Page: Go to the official website and choose the personal account option. It’s recommended to use browsers like Chrome or Mozilla Firefox for a smoother experience​​.
  2. Enter Your Mobile Phone Number: This is crucial for linking your account later with M-Pesa​​.
  3. Mobile Phone Verification: After entering your phone number, you’ll receive a confirmation code. Enter this code to proceed​​.
  4. Profile Setup: Fill in your details accurately. This step is vital for the verification of your account​​.
  5. Bank Account Linking: Add a bank card to your PayPal account. You can use debit cards from major Kenyan banks like Equity Bank, Co-operative Bank, KCB, and Stanbic Bank​​.

Linking PayPal to M-Pesa

After setting up your PayPal account, linking it to your M-Pesa account is straightforward and can be completed in less than 10 minutes:

  1. Access the PayPal Website: Navigate to the PayPal mobile money service dedicated to M-Pesa users​​.
  2. Log In: Use your primary PayPal email and password​​.
  3. Agree to Terms: Before linking, you’ll need to read and agree to the terms of service​​.
  4. Enter Your Phone Number: Input your M-Pesa registered phone number and link the accounts​​.
  5. Confirmation: A confirmation code will be sent to your phone. Enter this code to finalize the linking process​​.

This partnership between PayPal and M-Pesa is facilitated by Thunes, a global B2B payment platform, ensuring a smooth and secure transaction experience​​.

PayPal M-Pesa Withdrawal Process

Transferring funds from PayPal to your M-Pesa account is a cornerstone feature of the PayPal M-Pesa service, enabling users in Kenya to enjoy the convenience and speed of digital transactions. 

Withdrawal Steps

Withdrawing money from PayPal to M-Pesa is facilitated by an intuitive process designed to ensure ease and efficiency:

  1. Log into Your PayPal Account: Start by accessing the PayPal-M-Pesa withdrawal page. Enter your PayPal credentials to log in​​.
  2. Select Withdrawal Amount: Choose the ‘Withdraw’ option. Your PayPal balance, displayed in USD, will show the available amount for withdrawal. Enter the amount you wish to withdraw, ensuring it’s within your available balance​​.
  3. Currency Conversion Details: Upon entering your withdrawal amount, you’ll be redirected to a page detailing the equivalent amount in Kenyan Shillings (KES), the exchange rate applied, and an estimated transaction processing time. This step provides full transparency on the funds you’ll receive in your M-Pesa account​​.
  4. Confirm the Transaction: After reviewing all details, click ‘Confirm’ to finalize the withdrawal process​​.

Understanding Transaction Times and Fees

The convenience of the PayPal M-Pesa service is further enhanced by its quick transaction times and transparent fee structure:

  • Average Processing Time: Withdrawals typically reflect in your M-Pesa account within a few minutes to up to three calendar days, depending on the transaction amount. The estimated processing time for each transaction is provided to help you plan accordingly​​.
  • Transaction Fee Structure: Withdrawing funds involves a transaction fee of 3% of the amount converted from USD to KES. This fee is deducted from the total amount withdrawn. For top-ups to your PayPal account using your M-Pesa balance, a 4% transaction fee applies. Additionally, standard M-Pesa transaction charges are applicable​​.

Tips for a Smooth Withdrawal Experience

To ensure a hassle-free withdrawal process, consider the following tips:

  • Verify Account Details: Double-check your PayPal and M-Pesa account details before initiating a withdrawal to avoid any delays or complications.
  • Plan for Fees and Conversion Rates: Be mindful of the fees and the prevailing exchange rate during the withdrawal process. This will help you accurately estimate the amount that will be credited to your M-Pesa account.
  • Monitor Transaction Status: Keep track of your withdrawal status through your PayPal and M-Pesa accounts. This will allow you to promptly address any issues should they arise.

PayPal M-Pesa Deposit Process

Depositing money from M-Pesa to your PayPal account is a vital feature of the PayPal M-Pesa service; if you are looking to top up your PayPal account using M-Pesa, here is how to go about it easily:

Depositing Money to PayPal from M-Pesa

To fund your PayPal account via M-Pesa, follow these detailed steps to ensure a successful transaction:

  1. Calculate the Conversion Rate: Before initiating a deposit, it’s crucial to understand the current exchange rate. PayPal and M-Pesa apply a specific rate for converting your Kenyan Shillings (KES) to US Dollars (USD), which can fluctuate based on the market​​.
  2. Initiate the Top-Up Process: Log into your PayPal account and navigate to the section dedicated to topping up from M-Pesa. Here, you’ll find the option to ‘Top-up to PayPal’​​​​.
  3. Enter the Amount in USD: After clicking ‘Top-up to PayPal’, enter the amount you wish to transfer in USD. The system will automatically calculate the equivalent amount in KES that will be deducted from your M-Pesa account, including the transaction fee​​.
  4. Complete the Transaction on M-Pesa: Go to your M-Pesa menu, select ‘Lipa na M-Pesa’, then ‘Pay Bill’. Use the business number 800088, which is designated for PayPal transactions. For the account number, enter your phone number associated with both PayPal and M-Pesa accounts. Finally, enter the amount in KES as calculated by PayPal’s converter and confirm the transaction​​​​.

Understanding Fees and Conversion Rates

When topping up your PayPal account from M-Pesa, there are transaction fees and conversion rates to consider:

  • Transaction Fees: Depositing money to PayPal incurs a fee, which is a percentage of the transaction amount. This fee covers the currency conversion from KES to USD and the transaction processing​​​​.
  • Conversion Rates: The conversion rate is an essential factor in determining how much KES will be needed for the desired USD amount in PayPal. PayPal provides an in-built calculator to help users determine the exact amount to transfer, including the conversion rate at the time of transaction​​.

Tips for a Hassle-Free Deposit Experience

To ensure a smooth deposit process, keep these tips in mind:

  • Monitor Exchange Rates: Given the fluctuation in exchange rates, it’s wise to check the rate just before making a transaction to ensure you’re getting the best value.
  • Confirm Transaction Details: Double-check the amount and the Pay Bill number before completing the transaction on M-Pesa to avoid errors.
  • Keep Transaction Records: After completing the deposit, keep a record of the transaction details, including the confirmation messages from both PayPal and M-Pesa. This will be helpful in tracking your funds and resolving any discrepancies.

Understanding PayPal M-Pesa Charges and Security Measures

The convenience of using PayPal M-Pesa comes with certain costs, which are vital to consider for effective financial management:

  • Transaction Fees: When transferring money from your PayPal account to M-Pesa, a transaction fee of 3% is applied to the amount being converted from USD to KES. This fee structure ensures that the service can continue to provide a secure and efficient bridge between your PayPal and M-Pesa accounts​​.
  • Currency Conversion Charges: For users looking to deposit funds into their PayPal account from M-Pesa, a 4% transaction fee is incurred for the conversion process. Additionally, it’s important to note that standard M-Pesa transaction charges will apply, affecting the total cost of the transaction​​​​.

Understanding these fees is critical to managing your transactions effectively, ensuring you are always aware of the total cost of your financial operations within the PayPal M-Pesa framework.

Security Measures for Safe Transactions

In the digital age, security is paramount. Here are several best practices to ensure your PayPal M-Pesa transactions are secure and protected against potential threats:

  • Regularly Update Account Information: Ensure your account details, including phone numbers and email addresses, are up-to-date. This helps in receiving timely notifications about transactions and security alerts​​.
  • Use Strong Passwords and Two-Factor Authentication (2FA): Enhance your account’s security by using complex passwords and enabling 2FA. This adds an additional layer of security, making it more difficult for unauthorized users to gain access​​.
  • Monitor Account Activity: Keep a vigilant eye on your transaction history. Regular monitoring can help you quickly identify and report any unauthorized or suspicious transactions, preventing potential fraud​​.
  • Beware of Phishing Attempts: Be cautious of emails or messages that request personal information or direct you to a website asking for your PayPal or M-Pesa login details. Always verify the authenticity of such communications before responding​​.

FAQs on PayPal M-Pesa Services

Q1: Can I link multiple M-Pesa accounts to my PayPal account?

A1: No, PayPal allows you to link only one M-Pesa account at a time. This ensures a secure and straightforward management of funds between your PayPal and M-Pesa accounts.

Q2: What are the daily limits for PayPal to M-Pesa transactions?

A2: The transaction limits are governed by M-Pesa’s standard limits, which are KES 70,000 per transaction and KES 140,000 per day for withdrawals. For deposits, the limits align with PayPal’s receiving limits and M-Pesa’s sending capabilities​​​​.

Q3: How long does it take for a withdrawal from PayPal to reflect in my M-Pesa account?

A3: Withdrawals from PayPal to M-Pesa typically take a few minutes to 3 calendar days, depending on the transaction amount and processing volumes at the time of your transaction​​.

Q4: Are there any fees for linking my PayPal and M-Pesa accounts?

A4: There is no fee for linking your accounts. However, transaction fees apply when withdrawing from PayPal to M-Pesa and vice versa, including currency conversion fees​​.

Q5: How can I ensure the security of my PayPal M-Pesa transactions?

A5: Always use strong passwords, enable two-factor authentication, monitor transaction histories regularly, and never share your account details with anyone. Be wary of phishing attempts by verifying the authenticity of emails or messages claiming to be from PayPal or M-Pesa​​.


The PayPal M-Pesa service represents a significant advancement in the way We can interact with the global digital economy. In this article, I have provided you with everything you need to know about Paypal Mpesa registration, linking, withdrawal, and deposit processes to help you take full advantage of this service to enhance your financial flexibility and connectivity. The integration of these two financial powerhouses has simplified the way we, as Kenyans, transact across borders, offering a reliable, efficient, and secure method to manage funds globally and locally.

While the service brings unparalleled convenience, it’s essential to stay informed about the associated fees and remain vigilant about security practices to safeguard their transactions. As we move forward, the collaboration between PayPal and M-Pesa will continue to play a pivotal role in shaping the future of digital finance in Kenya, bridging the gap between local cash flow and global opportunities.

End of Blog Post. All the best

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