In Kenya, PayPal and M-PESA have significantly upgraded their joint money-transfer service. Historically, the service operated via the intermediary platform Thunes. As of mid-2025, the web-portal managed by Thunes will be discontinued, and users will rely on the M-PESA app directly to link, deposit, and withdraw funds from PayPal.
What is the M-Pesa-PayPal Service?
This is a dedicated money transfer service enabling PayPal account holders in Kenya (with eligible M-PESA accounts) to move funds between their PayPal and M-PESA wallets.
Eligibility and Setup
To use this service, you must:
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Hold an eligible PayPal account.
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Hold a M-PESA account (Safaricom) in Kenya.
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Link the two accounts via the M-PESA app (as of the update) rather than using the old Thunes-powered web portal.
How to Link Your Accounts via the M-PESA App
| Step | Action | Notes |
|---|---|---|
| 1 | Open the M-PESA app and log in using PIN or biometrics. | Ensure you have latest version. |
| 2 | From the home screen, tap the Global Payments (or similar) tab. | Navigation may vary by app version. |
| 3 | Select the PayPal mini-app or the “Link Account” option. | This replaces Thunes’ web portal. |
| 4 | Enter your PayPal email and password to sign in and link. | Must be the same name/identity as the M-PESA account for smooth processing. |
| 5 | Accept terms & conditions and confirm linking. | You’ll receive an SMS notification confirming the link. |
How to Withdraw Money from PayPal to M-PESA
| Step | Action | Notes |
|---|---|---|
| 1 | Log in to the M-PESA app. | Use PIN or biometric. |
| 2 | Go to the Global Payments tab → PayPal mini-app. | Shows both USD and KES balances. |
| 3 | Tap Withdraw to M-PESA. | Only possible via app (not website). |
| 4 | Enter the amount in USD and confirm. | Conversion and KES amount will show. |
| 5 | Enter M-PESA PIN to complete. | Transaction ID shown; SMS notifications follow. |
How to Top-Up Your PayPal Account Using M-PESA
| Step | Action | Notes |
|---|---|---|
| 1 | Log in to the M-PESA app. | PIN or biometrics. |
| 2 | Go to Global Payments → PayPal mini-app. | View USD equivalent and KES balance. |
| 3 | Tap Top-Up Account. | Enter the amount in KES. |
| 4 | Confirm via M-PESA PIN. | SMS receipt shows details. |
Important Rules & Fees
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You cannot transfer money to another person via this service; both the PayPal and M-PESA accounts must be in the same name.
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Fees:
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Withdrawals: 3% conversion fee.
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Top-ups: 3% conversion fee.
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Standard M-PESA C2B charges apply for top-ups.
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If your PayPal balance is in a currency other than USD, you must convert to USD before withdrawal to M-PESA.
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Transfer times:
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Withdrawals up to KES 250,000 are processed instantaneously.
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Top-ups are processed in real time (once currency conversion is done).
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Limits: M-PESA transaction caps apply (e.g., KES 250,000 per transaction, KES 500,000 per day) in line with current rules.
Why the Change: Removing Thunes as Middleman
Previously, the PayPal ↔ M-PESA service in Kenya was operated through Thunes (formerly TransferTo), which acted as a cross-border payments network aggregator.
However, the Thunes-powered web portal was shut down (as of August 16, 2025) to enable direct linking and transfers between PayPal and M-PESA within the M-PESA app.
What This Means for Users
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Simplified Experience: By eliminating the web-portal middleman, users benefit from smoother transfers via the M-PESA app.
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Better Control & Efficiency: Direct linking reduces extra steps and potential delays.
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Same Fees, but Possibly Faster: Fees remain as detailed above, but processing times and user experience may improve.
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All Activity in M-PESA App: Users will no longer use the web portal for linking or withdrawals, meaning the M-PESA app becomes the central tool.
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Conversion Requirement Reminder: Since only USD withdrawals are supported, PayPal users with other currencies must convert before withdrawal.
What to Watch
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Ensure your PayPal account is verified and eligible.
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Ensure your M-PESA app is updated and supports the Global Payments tab with PayPal mini-app.
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Be aware of conversion fees and currency issues. If your PayPal account holds multiple currencies, convert to USD before withdrawing.
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Monitor the official announcement from Safaricom / PayPal in case of further changes or updates.
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Quick Summary Table
| Feature | Key Detail |
|---|---|
| Minimum fee | 3% conversion fee for top-ups or withdrawals |
| Supported currency for withdrawal | USD only (from PayPal) |
| Withdrawal time for up to KES 250,000 | Instantaneous |
| Linking method | Via M-PESA app only (not web after portal shutdown) |
| Transfer to third parties | Not supported – must be same account holder |
The transition in the PayPal-M-PESA service toward an app-only, direct linking model marks a meaningful upgrade in Kenya’s digital payments ecosystem. For freelancers, online merchants, and everyday users, this change can improve convenience, speed, and accessibility. However, users must remain mindful of currency conversion rules, fees, and account eligibility to maximise the benefit of this enhanced service.
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