Safaricom has introduced a new feature within its M-PESA super app that allows users to withdraw funds directly from PayPal, streamlining access to international earnings for millions of Kenyans—particularly freelancers, remote workers, and digital entrepreneurs. This move is aimed at capturing a larger share of Kenya’s rapidly expanding digital gig economy, where PayPal remains a dominant payment platform for cross-border transactions.
Previously, users had to rely on a separate web portal to transfer funds from PayPal to M-PESA, a process often criticized for being slow and cumbersome. The new integration, launched as a mini app within the M-PESA ecosystem, eliminates the need for multiple logins and browser redirects, offering a more seamless and efficient user experience.
A Strategic Play in Fintech Expansion
This enhancement positions Safaricom to compete more directly with Equity Bank, which has long offered Kenya’s only instant PayPal-to-bank withdrawal service. While Equity remains the preferred option for high-value transactions—supporting withdrawals of up to $10,000 per transaction—the M-PESA app now offers a faster, bank-free alternative for users handling smaller amounts or seeking greater control over their funds.
The move is part of Safaricom’s broader strategy to deepen user engagement and grow revenue from financial services. With M-PESA’s transaction volumes and user activity at record highs, embedding more financial tools directly into the app is seen as a way to increase user “stickiness” and capture more value from Kenya’s evolving digital economy.
M-PESA’s Financial Performance and User Growth
According to Safaricom’s financial results for the year ending March 2025:
- Mobile money revenue rose 15.2% year-on-year to KES 161.1 billion ($1.25 billion).
- Chargeable transactions per active user increased by 20.3%, reaching 37.92 per month.
- One-month active M-PESA users grew by 10.5% to 35.82 million.
- Average revenue per user (ARPU) climbed 9.4% to KES 395.22 ($3.06).
- The agent network expanded by 14.1%, reaching nearly 299,000 agents.
The M-PESA app itself has been downloaded 13.7 million times and now serves 4.7 million active users. In 2024 alone, the app processed KES 2.3 trillion ($17.83 billion) in transactions.
Wallet Limits and Competitive Landscape
M-PESA wallets now support:
- Maximum balance: KES 500,000 ($3,875)
- Single transaction limit: KES 250,000 ($1,938)
- Daily transaction cap: KES 500,000
While some Kenyan users continue to explore alternatives like Wise and Payoneer for better foreign exchange rates and fewer restrictions, PayPal remains a key channel for receiving international payments. By integrating PayPal directly into the M-PESA app, Safaricom is positioning itself to retain more transaction volume and solidify its leadership in mobile financial services at a time when the fintech landscape is becoming increasingly competitive.
