M-PESA App Now Supports PayPal Withdrawals in Bid to Serve Kenya’s Remote Workforce

In a significant move to cement its dominance in Kenya’s digital finance ecosystem, Safaricom has integrated PayPal withdrawals directly into the M-PESA super app, a strategic feature aimed squarely at the nation’s rapidly growing population of freelancers and remote workers. In short, the M-PESA App Now Supports PayPal Withdrawals

The new functionality, launched as a mini app within M-PESA, marks a departure from the previously cumbersome process of transferring funds from PayPal to M-PESA. Previously, users had to navigate a third-party web portal riddled with delays and login loops. Now, with just a few taps on their smartphone, Kenyan users can withdraw PayPal funds seamlessly—without ever leaving the M-PESA environment.

“This is about removing friction and giving our users—especially digital workers—the tools they need to thrive in the global economy,” said Peter Ndegwa, CEO of Safaricom, at the product launch.

A Win for Kenya’s Freelance Economy

Kenya has emerged as one of Africa’s leading hubs for online work. Thousands of Kenyans earn a living through remote gigs ranging from software development and transcription to digital marketing and customer service. For many, PayPal is the default payment gateway for international clients, making this integration more than just a convenience—it’s a productivity booster.

Safaricom’s move is also a direct response to shifting user behavior and increasing competition in the international payments space. With platforms like Wise and Payoneer gaining popularity for offering better FX rates and lower fees, embedding PayPal into the M-PESA app positions Safaricom to retain market share by offering immediacy, familiarity, and ecosystem advantages.

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Complementing—but Not Replacing—Equity Bank’s Dominance

Although Equity Bank remains the dominant player for large PayPal withdrawals (up to $10,000 per transaction), Safaricom’s app-based approach caters to a different demographic: those who move smaller amounts regularly and value convenience over volume.

Unlike the bank-based process, this feature offers a bank-free withdrawal pathway, empowering users who may not have traditional bank accounts but still rely on international income streams.

M-PESA’s Rising Economic Influence

The PayPal integration comes at a time when M-PESA is becoming more central to Safaricom’s financial backbone. The telco’s latest financial statements (for the year ending March 2025) show:

These numbers underscore the growing dependence on mobile money in Kenya—not just for local transactions but increasingly for cross-border trade and freelance income.

The app now supports balances of up to KES 500,000 ($3,875), with single transactions capped at KES 250,000 ($1,938). The same KES 500,000 limit applies to daily cumulative transactions.

Strategic Ecosystem Lock-In

By embedding PayPal directly into the M-PESA app, Safaricom is following a broader platform strategy—transforming M-PESA from a wallet into a financial operating system. This helps the company deepen user engagement, increase retention, and diversify revenue streams beyond traditional airtime and SMS.

In the competitive and dynamic world of fintech, this move may give Safaricom an edge not just locally, but potentially across the wider East African region where M-PESA is expanding.

For Kenya’s remote workers and digital freelancers, this integration is a welcome update that simplifies how they access international income. For Safaricom, it’s a calculated step to secure its leadership in the mobile money space by aligning with evolving user needs.

As the digital economy grows, the fusion of global platforms like PayPal with local giants like M-PESA may well be the formula that drives Africa’s financial inclusion forward. What is your take on the fact that M-PESA App Now Supports PayPal Withdrawals?