Receiving PayPal in Tanzania: A Kenyan M-PESA Workaround

For many Tanzanians, especially freelancers and online entrepreneurs, PayPal can feel like a mouth-watering fruit just out of reach. While PayPal is a global leader in online payments, direct withdrawals to Tanzanian bank accounts aren’t readily available. This makes receiving payments a significant hurdle. But fear not, there’s a workaround that leverages the robust mobile money infrastructure of neighboring Kenya – specifically, M-PESA.

The PayPal In Tanzania Problem Solved: Using Kenya’s M-PESA

This article outlines the step-by-step process of receiving PayPal money in Tanzania using a Kenyan PayPal account and its ability to link with Kenyan M-PESA.

While it involves some steps and considerations, it’s a practical solution for many who need to access their online earnings.

Why This Workaround?

• Direct PayPal Limitations: PayPal doesn’t directly support withdrawals to Tanzanian bank accounts.
• M-PESA Integration: In Kenya, PayPal integrates seamlessly with M-PESA, allowing for easy transfers.
• Widely Used: M-PESA is a ubiquitous mobile money platform in Kenya, making it accessible and convenient.

The Process: A Step-by-Step Guide

This method essentially uses a trusted intermediary (yourself or a contact) in Kenya to receive the PayPal payment and then transfer it to you in Tanzania via M-PESA or another method. Here’s how it works:

1. The Kenyan Connection:

• Need for a Kenyan PayPal Account: The core of this workaround is having access to a valid and active Kenyan PayPal account. This could be:
  • Your Own Kenyan Account: If you reside in Kenya or have a Kenyan address, phone number, and bank account/M-PESA linked, you can create your own. This is the most secure and recommended option.
  • A Trusted Contact in Kenya: If you don’t have a direct Kenyan presence, you’ll need to involve a trusted friend, family member, or business associate in Kenya willing to receive the payment on your behalf.
  • Important Note: Always prioritize trust when involving a third party.

2. Setting up the Kenyan PayPal Account (If Needed):

• Valid Email Address: Use a valid and accessible email address to register.
• Kenyan Phone Number: The account requires a valid phone number, ideally linked to M-PESA.
• Kenyan Address: Provide a valid Kenyan residential address, even if it’s temporary.
• Verification: Verify the account as prompted by PayPal. This may involve linking a Kenyan bank account or debit/credit card.

3. Linking Kenyan PayPal to M-PESA:

• Access PayPal Website/App: Log in to the Kenyan PayPal account.
• Link M-PESA: Go to the settings and look for the option to link a mobile money account.
• Enter M-PESA Details: Enter the correct M-PESA phone number associated with the Kenyan account.
• Follow Prompts: PayPal will guide you through the verification process.

4. Receiving Payment in PayPal:

• Provide PayPal Email: Share the email address linked to the Kenyan account with the person/business needing to pay you.
• Payment Received: The sender can send funds to the Kenyan PayPal account.

5. Transferring Funds from PayPal to M-PESA:

• Log in to PayPal: Log in to the Kenyan PayPal account.
• Withdraw to M-PESA: Select the “Withdraw” option and choose M-PESA as the destination.
• Enter Amount: Enter the amount you wish to withdraw, considering any potential fees.
• Confirm Withdrawal: Review the transfer details and confirm the transaction.

6. Receiving Funds in Tanzania:

• M-PESA to M-PESA Transfer: If you have a trusted contact in Kenya, they can transfer the funds from their M-PESA to your Tanzanian M-PESA account.
  • Note: Check the fees and limitations for international M-PESA transfers.
• Alternative Transfer Options: If direct M-PESA isn’t feasible, consider using other money transfer services with coverage in Kenya and Tanzania, such as WorldRemit, Wise (formerly TransferWise), or Western Union.

Important Considerations:

• Fees: Be aware of PayPal withdrawal fees, M-PESA transfer fees, and potential exchange rate costs. These can impact the final amount you receive.
• Security: Prioritize the security of your PayPal account and be cautious when involving third parties.
• Currency Fluctuations: Be aware of currency fluctuations between USD/KES/TZS, which can affect the final amount.
• Terms of Service: Ensure you are following PayPal’s terms of service. Using a third party’s account is sometimes a grey area, but as long as the account is being used for its intended purpose, and the user is aware, then it is less likely to be flagged as suspicious.
• Alternatives to M-PESA: While M-PESA is the most widely used, Explore other mobile money and money transfer services available in Kenya that might offer better exchange rates or transfer fees to Tanzania.

Conclusion:

While a direct PayPal solution for Tanzania would be ideal, this Kenyan M-PESA workaround provides a feasible path for many to receive online payments.

By carefully following these steps and being mindful of the associated costs and security implications, Tanzanians can bridge the PayPal gap and access their hard-earned money. Stay updated on the latest payment regulations and explore alternative solutions as they become available.

Let’s engage!

• Leave any questions you have in the comments!
• Have you tried this method? Share your experience!

This article is designed to be informative and empower Tanzanians in accessing their online earnings. Remember to do your due diligence and stay informed about the latest updates from PayPal and mobile money providers.