In Uganda, its true you can withdraw money from PayPal to Mtn mobile money /MOMO or to Airtel Mobile money but at a cost many find high because the services are done individually and each individual has own rate.
There is also possibility of going to some offices and you pick cash though its vitae you deal with a person with an actual office. The PayPal money withdrawal options in Uganda are somehow limited compared to some other countries because the country itself is restricted from receiving though the smart youth in Uganda IT sector always come up with ideas in how to work around the restrictions from PayPal.
The IT (Information Technology) sector in Uganda is steadily growing and showing promising potential. The country has been making efforts to embrace technology and leverage its benefits for economic and social development. This growth has seen a large number of youth going online to work and be paid on PayPal. Since PayPal can’t send to Uganda banks or MOMO directly yet teh youth need to get paid on PayPal, alot of individuals have come up with businesses offering PayPal withdraw services in Uganda. In-fact not only in Uganda but even surrounding countries like Rwanda, Tanzania, Ghana, Burundi, Congo, Somalia, South Sudan and others.
Most of the people in the PayPal withdraw services in Uganda and east Africa are mainly people with access to Mpesa Kenya line (safaricom), Equity Kenya or people with friends in countries where PayPal withdraw to bank directly is fully supported and not restricted.
Here are the commonly available withdrawal options for Ugandan PayPal users:
1. From Paypal to Bank Withdrawal Method: This is only possible if your PayPal account has to be setup differently because Uganda PayPal accounts are restricted from receiving which affects all banks in the country. With a virtual PayPal Account, You can link your Ugandan bank account to your PayPal account and then withdraw funds from PayPal to your bank account. Note that not all banks in Uganda may support this service, we suggest equity bank or Stanbic bank ATM cards. If you need a PayPal account which can work with Ugandan Banks when withdrawing, please contact us and we take you through
2. Withdraw From Paypal to Mobile Money Method: This confuses many people but PayPal to mobile money in Uganda, be it MTN Uganda mobile money, Airtel Mobile money or MOMO is impossible but made possible through using third parties not PayPal itself since PayPal doesn’t send directly to mobile money Uganda. To withdraw from PayPal to mobile money, you transact with someone(By re-sending him money you have received in your PayPal account), let’s say webvator, then webvator after receiving your money sends you equivalent money to your mobile money line. That’s how PayPal to mobile money withdraw service is done. Its not Paypal sending money to your mobile wallet bur rather the person your transacting with. Some Ugandan PayPal users think entering there phone numbers to Paypal means they will be able to withdraw on that line, this is not true, entering your phone number in PayPal just means you can receive sms on that line in-case you need to access the account or when your locked out.
It’s essential to be aware that certain fees and processing times may apply to these withdrawal methods, so it’s a good idea to ask the person your to transit with detailed information about the current withdrawal fees and final amount you will get in Uganda shillings. Additionally, always ensure that you are using a reputable PayPal service to avoid potential scams or unauthorized transactions.
3. Xoom Paypal service in Uganda: Xoom, a digital money transfer service owned by PayPal, was available in Uganda. Xoom allows users to send money from various countries to recipients in Uganda, providing a convenient and fast way to send remittances or make international transfers. This service was only possible with Equity Bank in Uganda, but as for now we are not sure if this is still active. You might need to confirm with Equity Bank Uganda concerning Xoom service which enabled clients to be receiving directly from Paypal and you pick up cash at Equity bank. Good thing about Xoom is you don’t need a PayPal account to use it since receiver goes to bank and pick up cash
4. Withdraw Paypal funds via Online websites : Ugandan PayPal users can use services of websites offering withdraw services in Uganda. These websites help you withdraw money from Paypal but at a fee. You might be required to prove your identity by first uploading an ID and names have to match names on your PayPal account
5. Make Payments online: Ugandan PayPal users can use their PayPal balance to make online payments for purchases on websites that accept PayPal as a payment method. This is a convenient way to utilize the funds without the need for withdrawals.
6. Buy Safaricom Kenya line and withdraw with it: “PayPal’s collaboration with M-PESA is part of the company’s long-term strategy to enable e-commerce and democratise financial services on the African continent. Paypal can send to Mpesa kenya line via https://www.paypal-mobilemoney.com/m-pesa
After receiving the money on your Mpesa line, you can then send it to MTN Uganda or Airtel money or you can go to Mpesa agent and withdraw directly with him
7. Equity Kenya Bank account Paypal withdraw: Equity Bank Kenya does offer a service that allows customers to withdraw funds from their PayPal accounts to their Equity Bank accounts. This service was known as “PayPal to Equity Withdraw Service.” If your in Uganda and you manage to get Equity Kenya bank account, you can withdraw from Paypal to kenya bank account and then use ATM card in your Uganda bank account to withdraw that money
Here’s how the PayPal to Equity Withdraw Service worked:
- Linking Accounts: To use the service, you needed to have an Equity Bank account and a verified PayPal account. You would link your Equity Bank account to your PayPal account by following the instructions provided by Equity Bank.
- Withdrawal Process: Once your accounts were linked, you could initiate a withdrawal from your PayPal account to your Equity Bank account. The withdrawn funds would be converted from the currency in your PayPal account (e.g., USD) to Kenyan Shillings (KES) at the prevailing exchange rate.
- Transaction Time: The processing time for the withdrawal varied but could take up to a few business days for the funds to reflect in your Equity Bank account.
- Withdrawal Fees: Equity Bank applied withdrawal fees for this service, which were deducted from the amount being withdrawn.
8. Virtual Cards: A virtual card, also known as a virtual credit card or virtual debit card, is a digital payment card that exists only in a digital or electronic format and does not have a physical, tangible form like a traditional plastic card. Virtual cards are designed to provide a secure and convenient way to make online transactions without the need to use a physical card.
PayPal allowed withdrawals to certain virtual cards, but there were some limitations and considerations to keep in mind.
Here are some points to consider regarding PayPal withdrawals with virtual cards:
- Eligibility: PayPal may allow withdrawals to certain virtual cards issued by specific banks or financial institutions. However, not all virtual cards are eligible for withdrawals, and it may vary depending on your country of residence.
- Card Verification: To use a virtual card for withdrawals, you usually need to link and verify the virtual card with your PayPal account. Verification may involve authorizing a small transaction or entering a code provided by the card issuer.
- Withdrawal Fees: PayPal may apply fees for withdrawals to virtual cards, similar to withdrawals to regular bank accounts or debit cards.
- Withdrawal Limits: PayPal may have specific withdrawal limits for virtual cards, and these limits could be different from those applicable to regular bank accounts or cards.
- Currency Conversion: If the virtual card’s currency differs from the currency in your PayPal account, currency conversion fees may apply during the withdrawal process.
- Card Issuer Policy: Apart from PayPal’s policies, the virtual card’s issuing bank or financial institution may have its own rules and restrictions regarding PayPal withdrawals, so it’s advisable to check with them as well.
- Transfer Funds to Your Friend’s PayPal: You can transfer your PayPal funds to your relative or friend’s PayPal account who is located in a country where PayPal supports local withdrawals. This could be a country with more flexible withdrawal options or lower withdrawal fees.
- Withdraw Locally: Once the funds are in your friend’s PayPal account, they can initiate a local withdrawal to their bank account or other payment methods available in their country. The withdrawal options may vary based on the country and PayPal’s policies in that region.
- Send Money to You: After your friend successfully withdraws the funds locally, they can then send the equivalent amount in your local currency back to you. This can be done through various methods like bank transfers, mobile money, or other peer-to-peer payment services.
While this method can be a workaround, there are some important considerations:
- Trust: You must fully trust the person you are dealing with since you will be entrusting them with your money during the process.
- Fees and Exchange Rates: Keep in mind that each step of the process may involve fees, including currency conversion fees, withdrawal fees, and potential transaction fees for sending money back to you.
- Legal and Tax Implications: Be aware of any legal or tax implications of transferring money between countries, as international financial transactions may be subject to regulations and reporting requirements.
- PayPal Policies: Check PayPal’s terms and conditions to ensure that this method complies with their policies. Some activities may be considered violations of PayPal’s User Agreement, and engaging in such actions could lead to account limitations or other consequences.
Before proceeding with this method, it’s crucial to research the specific withdrawal options available in your friend’s country, understand the fees involved, and discuss the process thoroughly with your friend or relative to ensure a smooth and transparent transaction.
IT (Information Technology) sector in Uganda
Here are some key aspects of the IT sector in Uganda:
- Government Initiatives: The Ugandan government has recognized the importance of the IT sector and has been implementing various initiatives to promote technology adoption and digital transformation. These initiatives include investing in infrastructure development, supporting tech startups, and promoting ICT (Information and Communication Technology) education and training.
- Tech Hubs and Startups: The capital city, Kampala, has become a hub for tech startups and innovation. Several co-working spaces, tech hubs, and incubators have emerged, fostering a vibrant startup ecosystem. These startups are working on a wide range of technology solutions, including mobile applications, fintech, e-commerce, and agricultural technology.
- Mobile Technology: Uganda has witnessed a significant increase in mobile technology adoption. Mobile phone penetration has been rising rapidly, and mobile money services have become widely used, enabling financial inclusion and digital transactions for many Ugandans.
- Internet Connectivity: Internet connectivity has been improving in Uganda, although there are still challenges in terms of coverage and affordability, especially in rural areas. Efforts are being made to expand internet access and improve the overall ICT infrastructure.
- E-Government Services: The government has been working on various e-government initiatives to enhance service delivery, increase transparency, and improve efficiency in public administration.
- Education and Training: Institutions in Uganda are offering IT-related courses and training programs to equip the workforce with relevant skills. The focus on STEM (Science, Technology, Engineering, and Mathematics) education has been increasing to support the growth of the IT sector.
- Challenges: Despite the progress, the IT sector in Uganda faces some challenges, including limited access to funding for startups, cybersecurity concerns, and the need for more specialized IT skills.
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