Equity Bank customers will now withdraw funds from their PayPal accounts within 24 hours from the normal three business days, the lender has announced.
This means that Equity will offer the fastest PayPal settlement period in the country enhancing efficiency for the increasing number of Kenyans who receive payment through the international payment solutions provider.
Equity Bank, which currently offers the only bank withdrawal service in the country, enables PayPal account holders to withdraw funds paid from their registered PayPal accounts straight to their Equity Bank accounts in either KES or USD, excluding credit card accounts.
“The reduction in the settlement period is of great significance as the country moves towards growing the uptake of e-commerce. COVID-19 has forced many MSMEs to adopt a digital operating model including the adoption of cash lite payment models such as direct payments into their Equity accounts through PayPal. The reduced settlement period will allow businesses to effectively receive payments enabling them to manage their cash flows and accelerating the growth of their businesses,” said Equity Bank Kenya Managing Director Gerald Warui.
For new users looking to use the withdrawal service, once they have successfully created and verified their PayPal accounts, they will sign up on the Equity Bank website. This will enable customers to withdraw PayPal account balances into their Equity accounts.
“As PayPal, we are happy to enhance our relationship with Equity for the better good of our customers. Whether you are an individual or a business, PayPal will enable you to get paid from over 200 countries and markets. PayPal account holders can now easily access their balances by withdrawing to their Equity Bank account. The significant reduction in settlement time simply means quicker access to funds for businesses reinforcing our commitment to supporting the growth of local MSMEs,” says Tahir Emrah Tuzun, PayPal Head of Sales and Market Development Middle East and Africa.
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.
The reduction in PayPal’s settlement period complements Equity’s digital banking solutions aimed at increasing customers’ ease of accessing and managing their accounts through platforms such as Equity Mobile, Equity Online and Equitel lines.