Equity Bank cuts cash settlement on PayPal to 24 hours

PayPal withdrawals have been taking at least 3 days

In Summary
  • It is currently the only lender offering withdrawal service in the country.
  • It enables payments in 200 countries across the world
Equity Bank headquarters in Upper Hill area, Nairobi/REUTERS
Equity Bank headquarters in Upper Hill area, Nairobi/REUTERS

Equity Bank will settle withdrawals sent via PayPal within a day down from three days, a move likely to improve the settlement of international transactions in Kenya. 

This is good news especially for thousands of online writers who use the platform to receive payments from their offshore clients. They have been waiting for at least three days for the payments to clear. 

In a statement, the lender said it has cut  the duration it takes to settle PayPal withdrawals from three business days to just 24 hours, a development that allows it to offer the fastest PayPal settlement period in the country 

Equity Bank is currently the only lender offering withdrawal service in the country.

It enables PayPal account holders to withdraw funds paid from their registered PayPal accounts straight to their Equity Bank accounts in either Shillings or the US Dollars, excluding credit card accounts.

According to Equity Bank Kenya managing director Gerald Warui, the reduction in the settlement period is of great significance as the country moves towards growing the uptake of e-commerce. 

The Covid-19 has forced many MSMEs to adopt a digital operating model including the adoption of cash lite payment models such as direct payments into their Equity accounts through PayPal.

''The reduced settlement period will allow businesses to effectively receive payments enabling them to manage their cash flows and accelerating the growth of their businesses,'' Warui said.

 PayPal head of sales and market development in the Middle East and Africa said they are happy to enhance the relationship with Equity for the better good of our customers.

Whether you are an individual or a business, PayPal will enable you to get paid from over 200 countries and markets.

PayPal account holders can now easily access their balances by withdrawing to their Equity Bank account.

The significant reduction in settlement time simply means quicker access to funds for businesses reinforcing our commitment to supporting the growth of local MSMEs.

Freelance writers, Kenyans with families abroad, those in the creative industry and MSMEs involved in cross-border trade among others are expected to benefit from this service with both PayPal and Equity charging minimal processing fees.

This efficiency is also expected to boost diaspora remittances flow, the highest foreign exchange earner for the country. 

Central Bank of Kenya (CBK) data shows remittances from Kenyans living in the diaspora grew by 10 per cent last year despite economic uncertainty due to the Covid-19 pandemic.

The report shows that Kenyans in the diaspora sent home Sh3.4 billion in the 11-months to November last year compared to Sh3.1 billion same period the previous year.

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