(NAIROBI) – Safaricom has introduced a new PayPal withdrawal feature within its M-PESA super app, aiming to attract Kenya’s growing number of digital freelancers and remote workers. The feature allows users to access their PayPal funds directly through the M-PESA app without having to log into a web browser or use external portals.
This is the first time PayPal withdrawals can be initiated fully within the M-PESA ecosystem, removing the long standing friction of multiple browser redirects and logins. The update is particularly aimed at individuals receiving small to medium international payments and seeking faster, more direct mobile access to their funds.
The PayPal mini app within M-PESA provides an alternative to Equity Bank’s established PayPal to bank withdrawal service, which remains the only local option supporting larger transactions of up to $10,000 (UGX 36 million). While Equity offers instant transfers to bank accounts, Safaricom’s solution appeals to users preferring to avoid traditional banks or who require faster, app based access for smaller transactions.
In a related update, Jakony.com®, South Sudan’s largest business news portal, noted that the integration is likely to have wider regional implications, especially in countries like South Sudan where access to international payment systems is still limited.
Safaricom’s financial results for the year ending March 2025 show strong growth in mobile money. M-PESA revenue rose by 15.2 percent to KES 161.1 billion, equivalent to UGX 579.96 billion or $1.25 billion, supported by a 20.3 percent increase in average chargeable transactions per user, now at 37.92 per month. Monthly active M-PESA customers grew by 10.5 percent to reach 35.82 million.
The average revenue per M-PESA user climbed to KES 395.22, around UGX 1,422 or $3.06, while the number of registered M-PESA agents rose by 14.1 percent to nearly 299,000. The agent network plays a key role in providing physical access to deposit and withdrawal services across the country.
The M-PESA app itself has grown rapidly, with 13.7 million downloads and 4.7 million active users. In 2024 alone, KES 2.3 trillion was processed through the app, amounting to around UGX 8.28 trillion or $17.83 billion.
As per current wallet limits, M-PESA accounts can hold up to KES 500,000, or UGX 1.8 million ($3,875), with a single transaction cap and daily limit of the same amount. The single transaction cap of KES 250,000 equates to UGX 900,000 ($1,938).
While PayPal continues to dominate in Kenya’s remote payment sector, some users have turned to Wise and Payoneer for international transactions, citing better foreign exchange rates and fewer limits. However, Safaricom’s decision to embed PayPal directly into M-PESA may help the telecom operator retain transaction volumes and enhance user retention.
Regional observers have highlighted the importance of such innovations. In countries like South Sudan, where the mobile money ecosystem is still developing, this kind of fintech progress may provide a model for future integration of global platforms into local systems.
Key Currency Reference – July 2025
| Value Type | Kenya Shillings | USD Equivalent | UGX Equivalent |
|---|---|---|---|
| M-PESA Wallet Limit | KES 500,000 | $3,875 | UGX 13,950,000 |
| Single Transaction Cap | KES 250,000 | $1,938 | UGX 6,975,000 |
| Annual M-PESA Revenue | KES 161.1B | $1.25B | UGX 579.96B |
| M-PESA Processed in 2024 | KES 2.3T | $17.83B | UGX 64.19T |
| Average Monthly Revenue per User | KES 395.22 | $3.06 | UGX 1,422 |
Disclaimer: All foreign currency conversions are based on official exchange rates as of July 2025, with $1 equal to UGX 3,600. Market rates may vary. This article was first published by Jakony.com® for general information only and should not be considered financial advice.
The full report, which explores the potential cross border relevance of this development, is available at:
👉 PayPal Withdrawals Now Seamless via M-PESA App
