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.
This advancement now enables Equity to provide the quickest PayPal settlement period in the country, increasing efficiency for the growing number of Kenyans who receive payment via PayPal.
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, “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.”
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.
Tahir Emrah Tuzun, PayPal’s Head of Sales and Market Development Middle East and Africa, stated, “As PayPal, we are pleased to strengthen our relationship with Equity for the benefit of our customers.” PayPal allows you to be paid from over 200 countries and markets, whether you are an individual or a business. PayPal users can now easily access their balances by withdrawing funds to their Equity Bank account. The significant reduction in settlement time simply means that businesses will have faster access to funds, reinforcing our commitment to supporting the growth of local MSMEs.”