PayPal Partners With Kenya’s Equity Bank For Remittances Withdrawal Service.
Its been a long time coming but finally one can use PayPal in Kenya to withdraw funds based on an update I was just alerted to via a popular technology mailing list in Kenya. Its a well-known fact that Kenyans in the Diaspora are key drivers behind the Kenyan economy through the large amounts of money in remittances they send every month into the country.
This is clearly a move by Equity Bank, which is one of the largest banks in Kenya to tap into the popularity of electronic remittances from Kenyan Diaspora via the hugely popular PayPal service. According to statistics from the Central Bank of Kenya, approximately US$ 100 Million is remitted every month as of May 2013 so its a massive opportunity for Equity Bank and PayPal.
Its a little disappointing that that the PayPal service in Kenya can only be used for withdrawals instead of also sending money but it is a start in the right direction. In addition, it seems that the service is being offered in conjunction with South Africa’s First National Bank (FNB) based on a prominent link on the Equity Bank web site. Another aspect about the PayPal withdrawal service from Equity Bank is that one has to open a bank account to use it which I think could be a big deterrent for many would be users. Ideally, the service could be operated by Equity Bank but available to all whether or not they have a bank account there. Indeed, a step further would be to make it bank impartial so that one could use it via PesaPoint ATMs or Safaricom’s MPESA as well – which I am willing to bet are in the pipeline.
You can find out more information on the PayPal withdrawal service via Equity Bank’s web site here.