Accessing your PayPal earnings through M-Pesa has become essential for Kenyan freelancers, online workers, and businesses receiving international payments. This comprehensive guide walks you through the entire process of withdrawing money from PayPal directly to your M-Pesa account.
The PayPal-M-Pesa integration, powered by Thunes and supported by Safaricom, eliminates the need for traditional bank transfers, providing near-instant access to your funds. Whether you’re a freelancer receiving client payments or an online business owner, understanding this process ensures smooth financial transactions.
Understanding PayPal to M-Pesa Service
The PayPal Mobile Money Service with M-PESA enables users to transfer funds between their PayPal and M-Pesa accounts. This service is provided by TransferTo (Thunes) in collaboration with Safaricom and PayPal.
Service Evolution and Current Status
Important Update: Transferring funds between PayPal and M-PESA accounts via the PayPal Mobile Money portal at paypal-mobilemoney.com/m-pesa is being discontinued on 16 August 2025. From this date, the portal and service will be permanently shut down.
Safaricom has added PayPal withdrawals directly to the M-PESA app, making it easier for Kenyan freelancers and remote workers to access funds earned abroad. This integration represents the future of PayPal-M-Pesa transactions.
Why This Service Matters
For thousands of Kenyans earning income internationally, the PayPal-M-Pesa connection provides:
Key Benefits:
- Direct access to international payments without bank accounts
- Near-instant withdrawals to mobile money
- Convenience for freelancers and remote workers
- No need to visit physical bank branches
- Integration with Kenya’s most popular payment platform
Overall, digital payment adoption continues growing rapidly, making services like PayPal-M-Pesa increasingly important for financial inclusion.
Requirements Before You Start
Before initiating any withdrawals, ensure you meet all necessary requirements.
Essential Prerequisites
You must have a registered M-Pesa account with Safaricom, own a Kenyan PayPal account, and use an Android device with internet access. You must also ensure the names on both your PayPal and M-Pesa accounts match exactly to avoid errors during linking.
Complete Checklist:
- Active Safaricom M-Pesa account
- Verified PayPal account (Kenyan registration)
- Matching names on both accounts (critical requirement)
- Smartphone with internet connection
- Your M-Pesa registered phone number
- PayPal balance in USD currency
Name Matching Requirement
The most common issue users face is name mismatch between accounts. Linking errors always occur when M-Pesa and PayPal account names don’t match exactly. Name mismatches are a common cause of failed linking attempts.
Name Verification:
- Check your PayPal account name in account settings
- Verify your M-Pesa registration name (dial *234#)
- Ensure exact match including middle names
- Contact support if names legitimately differ due to ID issues
Step-by-Step: Linking PayPal to M-Pesa
Linking via M-Pesa App (Current Method)
With the portal discontinuation, Safaricom integrated PayPal directly into the M-Pesa app.
M-Pesa App Linking:
- Open your M-Pesa app
- Navigate to “Global Payments” tab
- Select “PayPal” option
- Follow authentication prompts
- Link completes within minutes
How to Withdraw from PayPal to M-Pesa
Withdrawal via M-Pesa App
To withdraw via M-Pesa app:
- Open M-Pesa app and login
- Tap “Global Payments” on navigation bar
- Select “PayPal” service
- Choose “Withdraw from PayPal”
- Enter USD amount to withdraw
- Review KES conversion
- Confirm with M-Pesa PIN
- Receive instant confirmation
Currency Requirements and Conversion for PayPal to M-PESA Transactions
Understanding currency handling prevents withdrawal issues.
USD-Only Withdrawals
You can only withdraw funds available in your PayPal USD balance. If your funds are in a different currency, convert them to USD within your PayPal account before initiating the withdrawal.
Currency Conversion Process:
- Login to PayPal website (not mobile app)
- Navigate to “Manage Currencies” section
- Select currency to convert
- Convert to USD
- Wait for conversion to process
- Then proceed with M-Pesa withdrawal
Exchange Rate Considerations
With PayPal, you can top up and withdraw funds in USD only; you can manage your M-PESA account in KES only.
Exchange Rate Facts:
- Rates set by service provider (Thunes)
- Typically less favorable than mid-market rates
- Rate includes service fees
- Displayed before transaction confirmation
- Rates update regularly throughout the day
Processing Times & Transaction Limits for PayPal to M-PESA Transactions
Understanding timeframes and limits helps plan withdrawals effectively.
How Long Does PayPal to M-PESA Transaction Take?
Withdrawals from PayPal to M-PESA are generally quick and reliable, with processing times ranging from as little as 2 hours to a maximum of 3 calendar days. The exact duration often depends on the amount being transferred and system traffic at the time.
Typical Processing Times:
- Small amounts (under KSh 50,000): 2-15 minutes
- Medium amounts (KSh 50,000-150,000): 30 minutes – 2 hours
- Larger amounts: Up to 24 hours
- Maximum wait time: 3 calendar days
For withdrawals: For values up to 250,000 KES, your M-PESA account will be debited instantaneously in most cases.
Transaction Limits
Users should be aware of M-PESA’s transaction limits, which currently cap each transfer at KES 150,000, with a daily maximum of KES 500,000.
M-Pesa Limits:
- Per transaction: KSh 150,000 maximum
- Daily total: KSh 500,000 maximum
- Wallet balance limit: KSh 500,000
- Monthly limits apply to verification status
Planning Large Withdrawals:
- Split large amounts across multiple days
- Consider multiple transactions if needed
- Maintain withdrawal schedule for predictability
- Alternative: Withdraw to bank for larger amounts
PayPal to M-PESA Transaction Fees and Costs
Understanding fee structure helps calculate actual amount received.
Withdrawal Fees
For withdrawals: you will be charged a 3% conversion fee of the amount withdrawn.
Fee Breakdown:
- Conversion fee: 3% of withdrawal amount
- Built into exchange rate shown
- No separate itemized charge
- PayPal doesn’t charge additional fee
- Total cost embedded in KES conversion
Top-Up Fees (If Adding Funds to PayPal)
If you choose to top up your PayPal account directly from your M-PESA wallet, you’ll be charged a 4% conversion fee.
Top-Up Costs:
- M-Pesa to PayPal: 4% conversion fee
- Standard M-Pesa Pay Bill charges apply
- Higher fee than withdrawals
- Consider before topping up
Cost Comparison Example
Withdrawing $100 USD:
- Exchange rate (example): 1 USD = 130 KES
- Gross amount: KSh 13,000
- 3% fee: KSh 390
- Net received: approximately KSh 12,610
- Actual rate effectively: 126.1 KES per USD
Troubleshooting Common PayPal to M-PESA Transaction Issues
Even with proper setup, issues occasionally occur.
Delayed or Missing Funds
If after the estimated processing time you haven’t received the funds in your account and your PayPal account has been debited, kindly contact Safaricom through dialing line 100 for a prepaid customer or 200 for a post-paid customer.
Resolution Steps:
- Wait full estimated processing time (2-3 hours)
- Check PayPal transaction history for debit
- Verify M-Pesa balance via *234#
- Check SMS for confirmation messages
- Contact Safaricom: 100 (prepaid) or 200 (postpaid)
- Have transaction ID ready
- Contact PayPal support if money debited but not received
Linking Errors
One of the most frequent issues users face when linking PayPal to M-PESA is a name mismatch. It’s essential that the full names on both accounts match exactly.
Fixing Linking Problems:
- Verify name match exactly (including spaces)
- Try different browser or device
- Clear browser cache and cookies
- Ensure stable internet connection
- Check phone number format correct
- Wait and retry if system busy
- Contact support if persistent issues
Currency Conversion Issues
You can only withdraw from your USD PayPal balance. If your balance is in another currency, you must first convert it to USD on PayPal’s website.
Currency Solutions:
- Login to PayPal website
- Navigate to wallet section
- Select “Manage Currencies”
- Convert non-USD funds to USD
- Wait for conversion completion
- Then attempt M-Pesa withdrawal
Technical Glitches
Common Technical Issues:
- Portal timeout during withdrawal
- SMS verification code not received
- Error messages without explanation
- Transaction showing pending indefinitely
Solutions:
- Refresh page and retry
- Check phone credit for SMS
- Use different browser or device
- Clear cache and cookies
- Try during off-peak hours
- Contact technical support
Alternative Withdrawal Methods
If PayPal-M-Pesa doesn’t work for your needs, alternatives exist.
Equity Bank PayPal Withdrawal
Equity Bank also supports withdrawals, but it takes 1–3 days compared to M-Pesa’s instant transfer.
The Process:
- Link PayPal to Equity Bank account
- Initiate withdrawal through PayPal
- Processing: 1-3 business days
- Funds arrive in bank account
- Then transfer to M-Pesa if needed
Other Payment Platforms
Alternatives to PayPal:
- Payoneer: Direct bank transfers, multiple currencies
- Wise (TransferWise): Better exchange rates, bank transfers
- WorldRemit: Direct M-Pesa deposits
- Skrill: E-wallet with local withdrawal options
According to the Kenya Revenue Authority, all international income must be declared for tax purposes regardless of payment platform used.
Best Practices for PayPal-M-Pesa Users
Maximize efficiency and minimize problems with these tips.
Timing Your Withdrawals
Strategic Withdrawal Planning:
- Withdraw during business hours for faster processing
- Avoid weekends if possible (slower processing)
- Plan ahead for urgent fund needs
- Consider exchange rate monitoring
- Batch small amounts if fees concern you
Security Measures
Protecting Your Accounts:
- Never share PayPal or M-Pesa passwords
- Enable two-factor authentication on PayPal
- Use strong, unique passwords
- Regularly check transaction history
- Report suspicious activity immediately
- Don’t link accounts on public WiFi
Record Keeping
Documentation Best Practices:
- Screenshot all transaction confirmations
- Save SMS confirmations from Safaricom
- Record transaction IDs
- Track exchange rates received
- Maintain records for tax purposes
- Keep email confirmations from PayPal
Also Read:
Frequently Asked Questions
How quickly does money arrive in M-Pesa from PayPal?
Withdrawals from PayPal to M-PESA are generally quick and reliable, with processing times ranging from as little as 2 hours to a maximum of 3 calendar days. Most transactions under KSh 50,000 complete within 2-15 minutes. Larger amounts may take longer, but the majority process within a few hours during business days.
What happens if my PayPal balance is not in USD?
You can only withdraw from your USD PayPal balance. If your balance is in another currency, you must first convert it to USD on PayPal’s website. Login to PayPal’s website (not mobile app), navigate to “Manage Currencies,” select the currency you want to convert, and convert it to USD. Wait for the conversion to complete before attempting your M-Pesa withdrawal.
Why do names need to match exactly between accounts?
Name matching is a security and verification requirement. Linking errors always occur when M-Pesa and PayPal account names don’t match exactly. Name mismatches are a common cause of failed linking attempts. This prevents fraud and ensures funds reach the correct account holder. If your legal names differ between accounts due to marriage or other changes, contact support for assistance.
What are the transaction limits for withdrawals?
M-PESA’s transaction limits currently cap each transfer at KES 150,000, with a daily maximum of KES 500,000. These limits apply to your M-Pesa account regardless of source. For larger amounts, consider multiple transactions across different days or withdrawing to a bank account instead.
Can I reverse a withdrawal if I made a mistake?
Unfortunately, once you’ve confirmed a top up or withdrawal, you won’t be able to stop or reverse it. This is why it’s critical to verify all details—amount, exchange rate, and recipient account—before confirming. Once confirmed, the transaction processes automatically and cannot be cancelled.
How much does it cost to withdraw from PayPal to M-Pesa?
For withdrawals: you will be charged a 3% conversion fee of the amount withdrawn. This fee is built into the exchange rate you see during the transaction, not charged separately. The displayed KES amount already reflects the 3% fee, so you receive the amount shown without additional deductions.
What should I do if funds don’t arrive after 3 days?
If after the estimated processing time you haven’t received the funds in your account and your PayPal account has been debited, kindly contact Safaricom through dialing line 100 for a prepaid customer or 200 for a post-paid customer. Have your transaction ID, PayPal email, and M-Pesa phone number ready when calling. Also check your PayPal transaction history to confirm the withdrawal was actually processed.
Can I withdraw someone else’s PayPal money to my M-Pesa?
No. The service only supports transactions between your own accounts. Both the PayPal and M-Pesa accounts must be registered in your name with matching details. This security measure prevents unauthorized transfers and protects both users.