PayPal is a global e-commerce business that has been in existence since 2002, and it is a service used for online payment of goods and services by clients and is also accepted by retailers for payment. The service holds a virtual account where value is held. In a step to push e-banking and online transactions accessible to the East African population, Equity Bank has partnered with South Africa’s First National Bank (FNB) to offer cash transfer from PayPal to bank accounts. The bank becomes the first in East Africa to offer access of funds from PayPal.
Currently PayPal accepts transfer of money from Kenyan issued credit and debit cards and Tanzania, Uganda, Rwanda and Burundi have been lagging behind as there’s is no known means to transfer funds from the PayPal to cards and bank account. Due to rigorous United States of America anti-money laundering rules PayPal restricts transfer of funds to bank accounts. So all Banks and card
issuers supporting transfer of funds from PayPal must adhere to the anti-money laundering rules.
Just like most of us we would only use Paypal services only for online purchases, but have little or no options to access the funds for use outside PayPal. Equity Bank is charging a 1.5 % transaction fee, in addition to a 2.4-3.9% plus a $0.3 fee charged by
PayPal.
Source:CIO East Africa (Nairobi)
