Financial Services & Mobile Money
5 min read
How to Set Up a PayPal Account and Link It to M-PESA
KenyaHowTo Team
April 20, 2025
In Kenya's digital economy, the ability to transfer money seamlessly across platforms is essential. PayPal, a globally recognized online payment service, allows users to send and receive money internationally, while M-PESA is Kenya’s most widely used mobile money service. Linking these two services can help freelancers, online merchants, and remote workers receive or send funds quickly and securely. This guide provides a step-by-step walkthrough on how to set up a PayPal account and link it to M-PESA.
Before you can link PayPal with M-PESA, you must first ensure you meet certain requirements. These include having a valid email address, a national ID, an active M-PESA account registered under your name, and access to the internet. Also, ensure that the name used for your M-PESA account matches the name you will use to register on PayPal. Discrepancies in names may cause verification problems or failed transactions.
To begin the process, you’ll need to sign up for a PayPal account. Visit the official PayPal website (www.paypal.com) and click on the 'Sign Up' button. Select a personal account, and provide your email address and a secure password. Follow the on-screen instructions to input your personal details, such as your legal name, address, and mobile number. Once completed, confirm your email address by clicking on the verification link sent to your email.
After confirming your email, you will be required to add a funding source to your PayPal account. This could be a credit or debit card from a Kenyan bank that supports international transactions. If you do not have a card, you can still receive funds into your PayPal account, which can later be withdrawn through M-PESA. At this stage, you may skip card linking if you only intend to receive payments and not make purchases.
Now that your PayPal account is set up, the next step is to link it with your M-PESA account. In Kenya, this service is facilitated through a partnership between Safaricom and TransferTo, under the domain www.paypal-mobilemoney.com/m-pesa. This platform allows you to seamlessly withdraw from PayPal to M-PESA or top up your PayPal account using M-PESA funds.
To proceed, open the PayPal Mobile Money website and click on the “Get Started” button. You will be redirected to a login page where you will be prompted to sign in with your PayPal credentials. After logging in, you will need to accept terms and conditions and provide your M-PESA phone number. Ensure this number is correct and registered under your own name.
Once your PayPal account is authenticated, a verification process will follow. You will receive a One-Time Password (OTP) via SMS to confirm your M-PESA number. Enter the OTP on the website and proceed. After successful verification, your PayPal and M-PESA accounts will be officially linked, and you can begin using the service to transact money.
To withdraw money from PayPal to M-PESA, go to the PayPal Mobile Money portal and log in. Click on the 'Withdraw from PayPal' tab. The available balance in your PayPal account will be displayed in USD. Enter the amount you wish to withdraw and confirm the transaction. The system will automatically convert the funds to Kenyan Shillings based on the prevailing exchange rate and transfer it to your M-PESA wallet.
It usually takes between 2 hours to 3 business days for the funds to reflect in your M-PESA account, depending on the transaction size and system traffic. You will receive an SMS from M-PESA once the money is successfully deposited. Ensure your M-PESA account has enough space to receive the funds, as the limit is KES 300,000 at any given time.
For topping up PayPal using M-PESA, go back to the PayPal Mobile Money portal and click on the “Top Up to PayPal” button. Enter the amount in USD you wish to send to your PayPal account. You will be given a PayBill number and an account number to use in your M-PESA menu. Go to M-PESA, select Lipa na M-PESA, then PayBill, and input the provided details to complete the payment.
It is important to double-check all transaction details before confirming. Mistakes in PayBill or account numbers may result in failed or lost transactions. Also, check the daily and monthly limits for M-PESA to avoid exceeding transaction caps. This will ensure your funds are transferred safely and without delay.
Linking PayPal and M-PESA offers convenience, but it is essential to maintain security. Use strong, unique passwords for both accounts, enable two-factor authentication where possible, and never share your credentials. Always log out after using public devices and monitor your transaction history regularly to detect any suspicious activity.
In addition to enhanced flexibility, linking your accounts allows you to participate in global e-commerce. Whether you are a freelancer receiving international payments or an online shopper buying goods from global platforms, the integration makes your transactions easier and faster. It eliminates the need for a traditional bank intermediary.
There are, however, fees associated with each transaction. PayPal charges a fee for currency conversion, and Safaricom applies a transaction fee for withdrawals and top-ups. These charges are usually displayed during the transaction process. Make sure to review and understand all applicable fees to avoid surprises.
In conclusion, setting up a PayPal account and linking it to M-PESA is a straightforward process that significantly improves financial flexibility for Kenyans. With just a few steps, you can unlock the ability to receive or send international funds instantly. It is a secure, efficient, and essential tool in today’s interconnected economy.
Before you can link PayPal with M-PESA, you must first ensure you meet certain requirements. These include having a valid email address, a national ID, an active M-PESA account registered under your name, and access to the internet. Also, ensure that the name used for your M-PESA account matches the name you will use to register on PayPal. Discrepancies in names may cause verification problems or failed transactions.
To begin the process, you’ll need to sign up for a PayPal account. Visit the official PayPal website (www.paypal.com) and click on the 'Sign Up' button. Select a personal account, and provide your email address and a secure password. Follow the on-screen instructions to input your personal details, such as your legal name, address, and mobile number. Once completed, confirm your email address by clicking on the verification link sent to your email.
After confirming your email, you will be required to add a funding source to your PayPal account. This could be a credit or debit card from a Kenyan bank that supports international transactions. If you do not have a card, you can still receive funds into your PayPal account, which can later be withdrawn through M-PESA. At this stage, you may skip card linking if you only intend to receive payments and not make purchases.
Now that your PayPal account is set up, the next step is to link it with your M-PESA account. In Kenya, this service is facilitated through a partnership between Safaricom and TransferTo, under the domain www.paypal-mobilemoney.com/m-pesa. This platform allows you to seamlessly withdraw from PayPal to M-PESA or top up your PayPal account using M-PESA funds.
To proceed, open the PayPal Mobile Money website and click on the “Get Started” button. You will be redirected to a login page where you will be prompted to sign in with your PayPal credentials. After logging in, you will need to accept terms and conditions and provide your M-PESA phone number. Ensure this number is correct and registered under your own name.
Once your PayPal account is authenticated, a verification process will follow. You will receive a One-Time Password (OTP) via SMS to confirm your M-PESA number. Enter the OTP on the website and proceed. After successful verification, your PayPal and M-PESA accounts will be officially linked, and you can begin using the service to transact money.
To withdraw money from PayPal to M-PESA, go to the PayPal Mobile Money portal and log in. Click on the 'Withdraw from PayPal' tab. The available balance in your PayPal account will be displayed in USD. Enter the amount you wish to withdraw and confirm the transaction. The system will automatically convert the funds to Kenyan Shillings based on the prevailing exchange rate and transfer it to your M-PESA wallet.
It usually takes between 2 hours to 3 business days for the funds to reflect in your M-PESA account, depending on the transaction size and system traffic. You will receive an SMS from M-PESA once the money is successfully deposited. Ensure your M-PESA account has enough space to receive the funds, as the limit is KES 300,000 at any given time.
For topping up PayPal using M-PESA, go back to the PayPal Mobile Money portal and click on the “Top Up to PayPal” button. Enter the amount in USD you wish to send to your PayPal account. You will be given a PayBill number and an account number to use in your M-PESA menu. Go to M-PESA, select Lipa na M-PESA, then PayBill, and input the provided details to complete the payment.
It is important to double-check all transaction details before confirming. Mistakes in PayBill or account numbers may result in failed or lost transactions. Also, check the daily and monthly limits for M-PESA to avoid exceeding transaction caps. This will ensure your funds are transferred safely and without delay.
Linking PayPal and M-PESA offers convenience, but it is essential to maintain security. Use strong, unique passwords for both accounts, enable two-factor authentication where possible, and never share your credentials. Always log out after using public devices and monitor your transaction history regularly to detect any suspicious activity.
In addition to enhanced flexibility, linking your accounts allows you to participate in global e-commerce. Whether you are a freelancer receiving international payments or an online shopper buying goods from global platforms, the integration makes your transactions easier and faster. It eliminates the need for a traditional bank intermediary.
There are, however, fees associated with each transaction. PayPal charges a fee for currency conversion, and Safaricom applies a transaction fee for withdrawals and top-ups. These charges are usually displayed during the transaction process. Make sure to review and understand all applicable fees to avoid surprises.
In conclusion, setting up a PayPal account and linking it to M-PESA is a straightforward process that significantly improves financial flexibility for Kenyans. With just a few steps, you can unlock the ability to receive or send international funds instantly. It is a secure, efficient, and essential tool in today’s interconnected economy.
