Kenya is currently experiencing challenges in transferring money from PayPal to Mpesa due to various reasons. Before delving into the specifics, it first needs to be understood that PayPal and Mpesa systems are fundamentally different in how they are set up and operate. But again, is the Kenyan government attempting to pose the 5% taxation to PayPal users?
PayPal, an online payment system, has been operating since 1998 and it is supported globally by banks. It is especially popular in many countries, predominantly in the United States, where users have been using it regularly to conduct business transactions.
How Paypal Works
PayPal works by connecting to a user’s bank account to transfer money to their PayPal account, and this system can be used for purchases and payments anywhere in the world.
Mpesa on the other hand is a specialized mobile payments platform run by The Safaricom communication company in Kenya. It was officially launched in 2008 and has become one of the most popular payment systems in East Africa.
Mpesa to Paypal
Instead of using banks, like PayPal, Mpesa works by linking to each user’s mobile phone number, allowing for direct payments and money transfers between two parties.
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The lack of strong technical infrastructure in Kenya poses a challenge to the process which also falls to be the major cause of the problem.
Mpesa to Paypal Not Working
Mpesa currently does not have a smooth operation, as the system lacks the experienced technical staff necessary to ensure transactions are conducted properly.
This is currently preventing money from being transferred between the two services and delays any money transfers.
The government is still campaigning on how to impose 5% taxation on Kenyan content creators. Research has shown that most content creators use PayPal to receive their payments.
Since PayPal has not been working for the last three days as this article is published, is there a possibility that the Kenyan government is finding a way to tax the transfers from PayPal?
The answer to this question is yet to be confirmed as no one has addressed the issues yet the Kenyan PayPal users are afraid of what could happen next.
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In addition, for money to be transferred from the PayPal account to the Mpesa account the funds must first be converted into Kenyan shillings and then withdrawn from the PayPal account.
The process of converting the money to the local currency and then withdrawing funds from the PayPal account can be a lengthy process, delaying the transfer of money to the Mpesa account.
Finally, there is the problem of security and fraud which needs to be taken into consideration when transferring money from PayPal to Mpesa.
Why Mpesa to Paypal Not Working
Since both services have different systems and ways of operating, fraudsters easily target unsuspecting victims by taking advantage of the vulnerable links between the two services. In other words, both systems could be under maintenance to avoid fraud. However, this could not be a major problem in this case.
It is important for both services to work together in order to overcome these challenges and ensure that money transfer services from PayPal to Mpesa are secure and efficient.
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