Kenyan PayPal users were treated to good news last week regarding Safaricom’s new update on the M-PESA app, bringing the ability to directly make PayPal withdrawals.
The move, although anticipated for years, was a welcome one as it will now get rid of the need for web logins and manual redirections that have often come with their fair share of frustrations.
However, a new development has seemingly happened with reports about PayPal planning to follow this update by shutting down its PayPal Mobile Money Service with M-PESA powered by Thunes, a move that appears to have sparked mixed reactions.
Via the web app’s pop-up message, users have now been informed that PayPal Mobile Money will stop working from August 16, with a recommendation that all users must link their PayPal account directly to the M-PESA app to continue transferring money.
This has been announced by the Singapore-based digital payments provider Thunes, which will eliminate the standalone service that has been popular among Kenyans for years.
While the direct link is expected to be popular, the move to completely replace the PayPal Mobile Money has raised questions of why Thunes wouldn’t just let it be there as a second option for users and merchants who have been using it.
So, to avoid the blackout coming on August 16, follow these steps:
- Open the M-PESA app and ensure it is updated to the latest version.
- Navigate to the “PayPal” option under the Finance or Global Services section.
- Log in to your PayPal account securely when prompted.
- Link your M-PESA and PayPal accounts (if not already linked via the PayPal Mobile Money portal).
While it’s not clear exactly why Thunes will be eliminating the platform, the move is associated heavily by a broader trend where global payment firms have been creating direct links to local mobile money platforms in emerging markets. This then gets rid of the need for an intermediary, which in this case has been Thunes, handing over the system solely to PayPal and Safaricom to deliver the service more efficiently.
Despite the pains, this move could prove to be worth it to create a more simplified payment system for all those who depend on PayPal for transactions with international clients and merchants.
