Update: PayPal now works in Kenya!
Anyone who does e-commerce from Kenya or wishes to receive payments online from Kenya knows the pain and hassle of it all. In other countries, the process is pretty straightforward but this is not so here in Kenya. For example, Paypal is the most popular online processing service but it is no good in Kenya. Kenyans using paypal can only send money and not receive it. Is there a way to go round this?
This is a question that was placed before me by Titus in my previous article about accepting payments online. As I sought to answer him, I felt that the answer would be useful to everyone interested in making money in Kenya and hence this post. When deciding on how you want to receive money, the first consideration is deciding who you intend selling to. If you want to sell to people in foreign lands you will face different challenges to that of selling online but to Kenyans within Kenya.
Receiving Money Online From Kenyans In Kenya
Generally, if you want to sell within Kenya, your choices are limited since many Kenyans do not have credit cards and those who do are still reluctant to buy from a website.
That leaves ‘off-line’ payments. These can be cheque, postal order, bank transfer, MPESA, ZAP, etc. Of course the problem with this is a matter of trust. MPESA (and possibly ZAP) is the closest that Kenya comes to an ‘online’ payment system. However, it is still not truly an automated system since the payment has to be processed manually. Here’s how to use MPESA to accept online payments.
Additionally, you can use some of the methods that follow to receive payments via credit card.
Receiving Money Internationally
The problem here is just that Paypal doesn’t work in Kenya. So we need a replacement that is just as good, or better. So I went out looking for third party payment processors who: can work in Kenya; have a solid reputation; seem professional. This is what I came up with:
AlertPay – A friend recommended AlertPay to me and I checked them out (very smooth website) and even signed up for an account with them. They seem to work well and I’d recommend you to try them out. Guess what? You can also make money online with AlertPay.
Other services which should work in Kenya: Moneybookers, Ikobo, 2CO.
If you still really want to use Paypal,it can work if you can get yourself a bank account in a country in which Paypal offers money withdrawal services. Alternatively, you can deposit your Paypal funds in GetAfreelancer (or similar sites) and request them to pay you by bank transfer, for example.
What payment processing method do you use?
Similar Posts:
- How To Receive Payments Online
- PayPal Now Works in Kenya!
- Think DukaPress
- How to use Paypal in Kenya – Part 1
- Hustling Online Just Became A Little Easier
Hi Kelvin, i did find your article useful, thanks.
You’re very welcome Titus. Have you started accepting payments yet? (other than by MPESA)
Am glad i can use alert pay online
Thanks for the helpful information
You are welcome Irene. What else can I help you with?
when i open the four pdfs the message am getting is that the file is damaged.
Let me email you just now
Does the communications bill make receiving payments from online any better?
Well, the communications bill doesn’t really do much to make receiving online payments any better.
It does lay the framework to help make a payment system possible but does no more.
hi.am registered in paypal but i wonder how i can get the payments from my local bank.
How do you mean?
I know for one thing, if you link your Paypal account with your credit card or debit card, then you can make online payments through Paypal very very easily.
hey kelvin,
thanks for the info,am really interested in doing online business but i have only run into scam sites,do you have any knowledge in these online businesses?e.g eBay,affiliate marketing e.t.c
Hey Samuel! Well, you’ve come to the right place! We set this site up to help people like you. What, exactly, are you interested in? We’ll help you get there.
Hey, great article! Okay, whenever I search for online jobs, I get plenty of them, its so confusing I don’t even know where and how to start…
Please can you assist me on how to narrow down my search? Thanks in advance. Cheers
Well, honestly, you need to decide what kind of jobs you want. For example, if you are good in writing then only search for writing jobs. You will be likelier to succeed if you focus on one thing.
Hi,Kelvin
Please enlighten me more on affiliate marketing ,Internet & forex business in Kenya.Is it possible and true that someone can make money online?
Please search this website, we’ve covered those topics in depth before.
I found this interesting Kelvin. I have a question though can you list a few of the Kenyan banks that are on the Swift Network and if possible BIC codes for Equity or National bank. It would really be helpful.
Regards,
Shane.
Here’s a list you may find interesting: http://theswiftcodes.blogspot.com/2010/03/kenya.html
However, I do not know much about banking. Look over here for info on Kenyan banks: http://bankelele.blogspot.com/
Oh and thank you very much for your insight.
This is very useful. i am setting up an alertpay account as i write. i will tell you how well it works. think of me as a guinea pig
Tell me how it goes!
Try paypal. Its more acceptable, look for $10 for Us postal address. then email me . I will help you get an online Us bank , verified paypal account with a 2 free credit card, bank’s and paypal’s beautykenya@ymail.com . Be prepared to pay DHL charges for your card.
I am developing a system for Kenyans. You deposit money via MPESA. Then i transfer that money to your paypal account.
I have a US postal address which forwards all Us mails to my Kenyan mail and i have used the address to open an online bank that i have used to verify my paypal account as a US.
The bank gives a credit card and I have helped several Kenyan to do the same using my address. You can also be one of them. Charges $50 (deposit of $10 (for address and then balance after your paypal is verified and you have a bank account. Email me beautykenya@ymail.com
Hi there! Your payment solution sounds like something that could really work. Is it acceptable by Paypal’s terms of use?
Hi Kelvin,
Of course PayPal doesn’t want Africans to benefit from online business, This might be against their terms of use but you are only helping yourself with the loop hole. The trick it, once you open the account, never change any of your profile details, password etc. Always put answer any question they ask 100% and your account will never be frozen.
A bit risky, I’d say. But then again, being able to use Paypal as a Merchant is very powerful…
Guys, This is a genuine solution, If you know someone in the US, it is even better, but the company forwarding mails is a reputable company, in fact its work is to forward any item bought online from US, at a fee of $10 per year plus shipping.
The bank is not a real bank but an agent of a US bank, i found it funny that they sent my card to the US address within 2 weeks without asking any details , A paypal account only takes 3-4 days to verify when using a bank account.
Who knows of something that can sell well online, Although am not making much money, Its an opportunity.
Hey thanx kevin for your insight,am gonna try ur options.i’l let u know of the developments.
I wish you all the best.
Hi Kelvin!
I was just reading the post by Rimsite and I would be interested in more details. I have quite a number of questions but let me try and get in touch with Rimsite
Do let me know how it goes!
Shane, if you know of something you can sell online. Paypal works people take your website serious when they see paypal button.
Paypal is now in South Africa next will be Kenya..
When do you think it will be in Kenya, though?
Hi kelvin,
Why can’t we just open a dollar account at a local bank and access PayPal thru that. Then we are able to recieve and send cash. only thing is now when you want to withdraw u gotta go and change the currency. Ok you lose abit but i guess its worth it if PayPal can really help your online business. MPesa was a blessing in Kenya and makes things easier but in Kenya and now UK. But we need a world wide solution immediatley ama?
Well, that won’t work because what Paypal is against is the fact that we live and operate in Kenya. They have a stupid blanket policy to “not trust” the whole of Africa except South Africa.
To operate Paypal from Kenya, you need to register with a foreign Address as well as a foreign bank account.
I come back educated. Hi Kelvin, maybe this will help someone and it’s something I’ve been using. It’s called Moneybookers. With an internet paying site or freelancers can have their money sent from moneybookers direct to your bank. It will end up costing you about $3 max plus the local bank charges.
i wonder maybe it could be possible to link from PayPal to moneybookers then transfer to local accounts?
Linking from Paypal to Moneybookers directly is not possible. But you don’t need to because from Moneybookers you can transfer money directly into a local bank account.
Thanks for this info Shane. I’ve been using Moneybookers as well and it is quite the godsend. Though I currently prefer Alertpay.com
Yeah it is. moneybookers just needs your bank BIC swift code and it works beautifully.
Kelvin,
What are it’s benefits of Alertpay over moneybookers?Cause it kind of threw me off a bit when I tried to go through info about them.
The main benefits, for me, are:
1. It was easier to develop a custom payment gateway for Alertpay and the process of having my website reviewed was easier on Alertpay – Moneybookers was a bit stricter.
2. You can earn a tidy sum by referring others.
Hi Kelvin
Thanks for your article! Its awesome i needed it BAD because i have been trying to get a way to be paid from US. Shame Paypal doesn’t work for those of us in Kenya. Thanks again, i will definitely check out other articles you have on the site. Ciao
Thanks Naomi! I’m glad you found it useful.
Dear Kelvin.
How are you?
I’m interested in your post.
Well, I read the post by Crystal which was about KCB card related to Paypal account.
There is lots of questions.. Could you answer me?
I’m not kenyan, not american.
But my Paypal account can receive and send money.
I have Paypal balance.
I’m foreigner, can I make the KCB card related to Paypal?
If I make the KCB card related to Paypal, can I withdraw money from KCB ATM?
If it’s impossible, can I use moneybookers for withdrawing from my balance? How can I withdraw from Moneybookers? Should I have to relate real bank account in Kenya to Moneybookers account? I don’t know if I can open bank account in Kenya, since I’m foreigner… Please resolve my many curiousity!!!
Kind regards.
Unfortunately, you cannot withdraw via PayPal to a Kenyan bank account.
I suggest that if you want access to your money in Kenya you either come with cash, or with your credit card – PayPal just doesn’t work here
However, if you have a moneybookers/Alertpay account, you can link it to a Kenyan bank account and get your money that way.
Thanks! One more question.
How much is the transaction fee to kenyan bank account?
My moneybookers account’s currency is USD.
Do they automatically transfer to Ksh?
Kind regards.
If you sign up with moneybookers, there are two ways you can receive money in Kenya:
1. They can send you a physical cheque that you can bank
2. They can wire money into your bank account (electronic money transfer)
In both cases you need a Kenyan bank account
Excuse me.
I was planning to open Moneybookers account and send money to Kenya Bank… But.. it seems to be impossible…
How about M-pesa?
I don’t know exactly about M-pesa, but it seems that it offers money service on Safaricom’s shop.
M-pesa and Moneybookers, is there some relations?
Kind regards.
MPESA is a mobile money system that, currently, does not work with online payment/money systems
hi everyone i think a solution is here if you wish to receive money in kenya or transact online especially those without a a credit card. check http://www.epay-kenya.com.
hope this helps .cheers