What PayPal’s partnership with Vodafone means for PayPal MPESA Users


For a long time now you needed to have a bank account linked to your PayPal account, a bank account with the United States to withdraw money swiftly. This has been cumbersome moreso for many Kenyans who majorly rely on mobile money transfers. I have too gone through lengthy transactions to get my money in PayPal account onto my M-PESA wallet. Well, things seem to have changed around after the MWC2016, the MWC saw a highly respectable partnership between PayPal and Vodafone which owns upto 40% of Kenya’s Safaricom Telecommunications giant.

Things are turning sweeter and this is what it means by the PayPal’s partnership with Vodafone for PayPal M-PESA users largely Kenyans.

Forrester Mobile analyst Thomas Husson commented: “PayPal’s agreements show that telecom operators can become strategic partners to distribute financial services particularly to connect to the unbanked in emerging countries, as demonstrated by the M-Pesa partnership which also saw a partnership with American Movil.”

“It’s yet another sign that you cannot win the wallet war alone. Consumers trust PayPal as a digital wallet provider in many countries across the globe – adding more choice and a best in-class app experience for consumers will help them – but to fully realize its ambition to become the OS of digital
commerce, PayPal now must also convince merchants simultaneously.”


This means that Kenyans will soon withdraw their money from PayPal directly to their mobile wallets the M-PESA money transfer. This will also get rid of middlemen who mainly steal from owners of PayPal accounts who would wish to withdraw.

M-PESA to PayPal and PayPal to M-PESA will now be swifter than ever. Also it will boost the economic growth since Kenya’s economy relies mostly on mobile money transfer.