Equity Bank has announced that it will shorten the time it takes to settle PayPal withdrawals. The time frame has been reduced from three business days to 24 hours or one business day.
With this advancement, Equity Bank will now be able to provide the quickest PayPal settlement period in the country, increasing efficiency for the growing number of Kenyans who receive payment via PayPal.
PayPal is one of the most popular money transfer platforms in the world. It is even used locally, especially for the gig economy workers that do a lot of jobs for companies abroad, including freelance writers.
However, it has received its share of criticism in Kenya because of issues related to withheld money. Others have reported that the platform doesn’t remit funds to recipients altogether in what has been termed as discriminatory.
Banks such as Equity have played an essential role in ensuring that customers can transfer their money from PayPal wallets to their bank accounts.
The bank, which is currently the only one in the country offering withdrawal services, allows PayPal account holders to withdraw funds directly from their registered PayPal accounts to their Equity Bank accounts. This includes both local currency and US dollars but does not include credit card accounts.
Equity Bank Kenya Managing Director Gerald Warui commented on the new development, saying that the reduction in the settlement period is of great significance as the country moves towards increasing the uptake of e-commerce.
“COVID-19 has compelled many MSMEs to adopt a digital operating model, which includes cash-lite payment models such as direct payments into their Equity accounts via PayPal. The shortened settlement period will allow businesses to effectively receive payments, allowing them to manage their cash flows and accelerate their business’s growth,” he added.
New users who want to use the withdrawal service must first successfully create and verify their PayPal accounts before signing up on the Equity Bank website. 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.