Equity Bank Targets Kenyans in the Diaspora with Reduced PayPal Withdrawal Charges

Equity Bank has cut down withdrawal charges on its Equity PayPal service in a bid to grow the share of Kenyan diaspora inflows. Users will now be charged as low as one per cent on large withdrawals made from PayPal account in the new tariffs.

Equity has in the past been charging 1.5 per cent of the United States dollar amount per transaction across-the-board. The bank will now charge those withdrawing Sh500,100 ($5,001) or more, one per cent of the amount.

Withdrawals of between Sh200,100 and Sh500,000 ($2,001 and $5,000) will be charged  1.125 per cent, while those between $1,001 and $2,000 will attract a 1.25 per cent fee.

Users withdrawing between $501 and $1,000 will be charged 1.375 per cent, while $500 and less will be charged 1.5 per cent per withdrawal transaction.

“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 Equity Bank group chief executive James Mwangi.

Last year, withdrawal time for PayPal users was slashed from eight to three days. In October, Equity said it was looking to increase its share of remittances by Kenyans abroad to 50 percent of the money they send back to the country per month.