Equity Bank has reviewed withdrawal charges on its Equity PayPal withdrawal service. Effective March this year, the new tariffs will see users pay as low as 1% on withdrawals made from their PayPal accounts, in a model that punishes lower withdrawals with higher charges.
The new rates for withdrawals from PayPal to Equity bank accounts will see customers withdrawing $5001 and above charged 1% of the withdrawal amount, between $2001-5000 will be charged 1.125%, between $1001-2000 will be charged 1.25%, between $501-1000 and customers withdrawing $500 and below will be charged 1.5% of the withdrawal transaction respectively.
“Financial inclusion continues to remain at the core of our business strategy. We have listened to our customers and introduced new tiered withdrawal charges,” said Equity Bank Group CEO and MD, Dr James Mwangi, during the launch.
“The PayPal service with Equity allows our customers to accept payment globally and withdraw locally. By introducing tiered pricing, we hope to encourage more usage from businesses and consumers already using PayPal. At the same time, we hope to continue creating value for our users and as a result, increase their engagement level with this platform,” said Dr Mwangi.
|Withdrawal amount in USD||5,001>||2,001-5,000||1,001-2,000||501-1,000||<500|
|Fee||1% of the Withdrawal amount||1.125% of the Withdrawal amount||1.25% of the Withdrawal amount||1.375% of the Withdrawal amount||1.5% of the Withdrawal amount|
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According to its 2017 end of year Financial Results, Equity Bank recorded a 132% increase in the volume of transactions across its international money transfer platforms. PayPal’s volume of transaction increased significantly in the past year as well. PayPal withdrawal time was last year reduced from 8 days to 3 days.
Equity Bank, which is the only bank in Kenya where PayPal customers can make withdrawals from their accounts, reiterated its commitment to continue putting in place innovative channels geared towards enhancing customer experience in line with the technology advancement. Through Equity Bank, customers are able to withdraw funds from their PayPal accounts through their Equity bank accounts.