Kenya remains at the forefront of mobile finance in Africa. With millions already using M-Pesa and PayPal being a cornerstone of global payments, many people in Kenya rely on the ability to move money between the two platforms. As of 16 August 2025, the old PayPal-to-M-Pesa service via Thunes has been officially discontinued. In its place, Safaricom has rolled out integration directly through the M-Pesa/Super App system. This guide will walk you through everything you need to know in 2025: how to link, withdraw, the costs, limits, benefits, and pitfalls.
What Changed in August 2025
- On 16 August 2025, the PayPal–M-Pesa service powered by Thunes was terminated.
- Safaricom and PayPal now provide the service directly via M-Pesa’s infrastructure—no need for Thunes or a separate portal.
- Users must use the M-Pesa Super App (or equivalent M-Pesa app with “Global Payments / PayPal” features) to link and withdraw funds.
Why It Matters
- Faster & more secure linking and withdrawals since everything runs under Safaricom’s infrastructure.
- Less dependency on external services.
- Potential for lower fees, or at least more transparency, since fees/exchange rates are handled in the in-app environment.
- Easier access for freelancers, e-commerce sellers, and individuals who receive international payments.
Requirements (2025)
Before you can link or withdraw PayPal funds into M-Pesa:
- A verified PayPal account (personal or business) with matching account names.
- An active M-Pesa account with Safaricom, associated with a valid National ID or Passport.
- The M-Pesa Super App (or the M-Pesa app version that includes Global Payments / PayPal features).
- A reliable internet connection.
How to Link PayPal to M-Pesa (2025 Steps)
These steps are based on recent guides published after August 2025.
- Open your M-Pesa app / Super App and log in.
- Navigate to Global Payments → PayPal (sometimes under “Services” or “Digital / Global Payments”).
- Select Link Account or something similar (“Agree & Connect”).
- You’ll be redirected (within the app) to log in to your PayPal account. Provide credentials, confirm identity/verification if needed.
- Once confirmed, the two accounts are linked. After linking, you can withdraw from PayPal → M-Pesa, or in some cases, top up your PayPal from M-Pesa, depending on what features are active.
How to Withdraw Funds (PayPal → M-Pesa) in 2025
Once your accounts are linked:
- Go to Global Payments → PayPal in the M-Pesa app.
- Select Withdraw (or “Withdraw Funds”) from PayPal.
- Enter the amount you wish to withdraw. The app will display the exchange rate (USD→KES) and any fees or margin included.
- Confirm using your M-Pesa PIN or any other verification required.
- Funds usually arrive in your M-Pesa wallet within minutes. Occasionally might take longer (especially during system maintenance or other delays).
Costs, Fees, Exchange Rates (2025)
- There is no fixed additional fee shown in many user reports beyond the exchange rate margin. The margin is often ~3% extra above the base USD→KES rate.
- PayPal’s own fees for receiving payments, currency conversion (if payments aren’t in USD), etc., still apply.
- M-Pesa withdrawal charges may apply depending on how you convert or use the money once in M-Pesa (if you withdraw to cash or send to other wallets).
Limits (2025)
Based on the latest user reporting:
- Minimum withdrawal amount: small, often around USD 1 equivalent in KES.
- Maximum per transaction / daily limits: subject to your M-Pesa limits and account status. Standard M-Pesa caps will still apply.
- For larger business or high-volume users, there may be higher ceilings if you have business verification.
Benefits
- Integration is now more streamlined and fully under Safaricom’s supervision.
- Faster access to funds from PayPal without needing third-party services.
- Easier for people in Kenya especially freelancers, remote workers, small businesses that rely on international payments.
- Helps maintain local currency access (KES) without needing to convert via bank accounts.
Potential Drawbacks / Things to Watch Out For
- The exchange rate margin can eat into your transfer, particularly for frequent or high-volume withdrawals.
- Matching account names and verification is crucial—mismatches may block linking or cause delays.
- Internet connectivity issues or app downtimes could delay linking or withdrawals.
- Some users report that during public holidays or system updates, processing may take longer than usual.
- The service is fairly new, so policies (limits, fees) may be subject to change. Always check the in-app terms.
Example Scenario
Here’s a hypothetical example in mid-2025:
- You received USD 100 in PayPal from a freelancing job.
- You open your M-Pesa app, go to Global Payments → PayPal → Withdraw.
- The app shows the exchange rate as USD 1 = KES 150, with a 3% margin (so you might get ~KES 145 after margin).
- You confirm withdrawal of USD 100 → ~KES 14,500.
- Funds arrive in your M-Pesa wallet within 5-10 mins.
Summary: Key Steps (2025)
- Make sure your PayPal and M-Pesa accounts are active, verified, and names match.
- Use the M-Pesa Super/App with Global Payments → PayPal integration.
- Link the accounts via the app (login to PayPal via the app).
- Withdraw via in-app prompts; check exchange rate and any fees.
- Receive funds in KES in your M-Pesa wallet.
Conclusion
The discontinuation of the Thunes-powered PayPal-to-M-Pesa service on 16 August 2025 marked a major transition. But Kenyans need not worry—Safaricom and PayPal have moved to a more direct integration through the M-Pesa infrastructure. The new method is more streamlined, faster, and under local regulatory oversight. While fees (especially in exchange margins) remain something to watch, the updated process is a significant improvement for anyone relying on cross-border payments.
FAQs on PayPal–M-Pesa Integration in 2025
1. Why was the Thunes PayPal–M-Pesa service discontinued?
Thunes officially stopped operating the PayPal–M-Pesa service on 16 August 2025. Safaricom and PayPal decided to move away from third-party management and integrate the service directly into the M-Pesa ecosystem for better security, control, and user experience.
2. How do I now link my PayPal to M-Pesa?
All linking is done through the M-Pesa Super App (or updated M-Pesa app). Under the Global Payments → PayPal section, you’ll find the option to link your PayPal account. You simply log in with your PayPal credentials, confirm your identity, and approve the connection.
3. How long does it take to withdraw from PayPal to M-Pesa?
Most transfers are processed within minutes, though occasionally it may take up to 24 hours, especially during high traffic or maintenance periods.
4. What are the fees for using PayPal with M-Pesa?
The main cost is the currency conversion margin, usually around 3–4% above the base USD–KES exchange rate. PayPal may also charge conversion fees if the payment is received in currencies other than USD. Standard M-Pesa withdrawal charges apply if you cash out.
5. What are the withdrawal limits?
You can withdraw as little as USD 1 (KES equivalent). The maximum is governed by M-Pesa wallet limits: up to KES 150,000 per transaction and KES 300,000 daily for personal accounts. Business accounts may access higher thresholds.
6. Can I deposit funds from M-Pesa into PayPal?
Yes. The M-Pesa app allows you to top up your PayPal balance directly. Funds are converted into USD at the prevailing exchange rate.
7. Is it safe to use this service?
Yes. The integration is managed by Safaricom and PayPal, both of which have advanced fraud protection, PIN security, and encryption systems. Always use secure internet connections, avoid sharing login details, and enable two-factor authentication on both accounts for maximum protection.
