With this, Safaricom is focusing on the growing share of Kenya’s freelance economy, where over 1.5 million workers now earn in dollars, pounds, and euros. Most of them receive their wages via PayPal. 

For years, they’ve had to endure slow, browser-based transfers or rely solely on Equity Bank’s instant withdrawal service. Now, there’s a quicker, app-based alternative in their pocket.

Integrated as a mini app within the M-PESA super app, the PayPal withdrawal service marks the first time users can access PayPal funds without needing to log in through external web portals. 

What used to be a clunky, multi-step process now takes just minutes and a few taps. Transfers typically process within two hours, far quicker than the one-to-three-day delays experienced with many bank-linked options.

For those navigating global work from Kenya, especially writers, developers, designers, and transcribers, this is a game-changer. A typical freelancer in Kenya earns between KES 1,000–3,000 per hour for transcription or up to KES 10,000 per article. 

With faster access to PayPal funds, managing liquidity and meeting local obligations becomes far easier.

The timing aligns with M-PESA’s role in Safaricom’s financial engine. In the year ending March 2025, mobile money revenue soared 15.2% to KES 161.1 billion ($1.25 billion). 

That jump was largely driven by a 20.3% spike in chargeable transactions per user, now averaging nearly 38 per month. Meanwhile, active customers grew 10.5% to 35.82 million.

Safaricom is no longer just a telco; it’s building a comprehensive financial ecosystem. The PayPal integration joins an expanding list of app-based financial services, from government payments to SME tools like Pochi la Biashara. 

Each service is tailored to a different income segment, but the target is the same; user retention and transaction growth.

To reiterate that goal, the app offers users real-time foreign exchange previews, biometric login for added security, and an in-app feedback system. Wallet limits have also been updated, users can now hold up to KES 500,000 ($3,875), with a daily transaction ceiling set to match.

Still, Equity Bank maintains a competitive edge when it comes to bulk withdrawals. It offers up to $10,000 per transaction, with no daily limits, and serves many high-volume sellers and cross-border e-commerce traders. 

But for individual freelancers and micro-entrepreneurs, M-PESA’s in-app alternative is faster, easier, and doesn’t require a bank account.

We can’t ignore the role of global rivals either. Platforms like Wise and Payoneer have been gaining ground in Kenya, offering better exchange rates and fewer restrictions than PayPal. 

But despite the alternatives, PayPal is still the most widely used gateway for digital freelancers, and this integration could help Safaricom capture more of that international money flow.

In the wider context, this could enhance inclusive digital finance in Kenya. As of December 2024, 84.8% of Kenyan households had access to mobile money. M-PESA alone processed KES 2.3 trillion ($17.83 billion) through its app in 2024. 

Safaricom’s goal now is to lock in that top spot and this latest development shows it’s willing to build the tools freelancers and remote workers actually need.

The post Safaricom Rolls Out Direct PayPal Withdrawals via M-PESA App appeared first on Tech | Business | Economy.

What used to be a near-total lock on the market is now slipping through M-PESA’s fingers. The Communications Authority of Kenya (CA) released fresh data confirming the downward trend, pointing to several key forces reshaping the sector: regulatory reforms, aggressive competition, and shifting customer priorities.

The biggest challenger is Airtel Money. Its market share has more than tripled in just two years, from 2.9% in 2023 to 9.1% in Q1 2025. Behind that growth is a focused, multi-pronged strategy. 

Airtel has cut transaction fees, refunded charges in airtime through Smarta Bundles, and struck key partnerships with retailers like Naivas to improve its agent network, especially in hard-to-reach areas.

Mobile money subscriptions jumped to 45.4 million during the quarter, accounting for 86.6% penetration in Kenya. SIM card subscriptions also rose to 76.2 million, up by 6.7%, aided by telcos’ renewed efforts to win back users. 

And Airtel is riding the wave. Its user base is now estimated at around 8 million, and its agent network is growing fast.

Even though M-PESA still has over 299,000 agents across the country, Airtel Money’s agent expansion is gaining pace. The total number of registered mobile money agents climbed 5.5% to 417,000 in Q1 2025, meaning challengers now have more reach than ever before.

Lower pricing is one of Airtel’s biggest weapons. To send KES 1,000 across networks, users pay KES 11 on Airtel, while M-PESA charges KES 13. Withdrawals cost less on Airtel too, KES 2 cheaper on average. These differences may seem small on paper, but for everyday users, they quickly add up.

The game-changer, though, was Kenya’s 2022 rollout of mobile money interoperability. That policy allowed people to send and receive money across different platforms, ending the long-standing advantage Safaricom had enjoyed by keeping its ecosystem closed. 

With those walls down, customers now move more freely, and Airtel has made it worth their while. Incentives like cashback on bank-to-wallet transfers are pulling users in.

Still, full freedom hasn’t arrived yet. Interoperability at the agent level, where users could walk into any mobile money outlet, regardless of network, is still pending. Once the Central Bank of Kenya (CBK) rolls that out, and they’ve promised to, Safaricom may see even greater churn.

M-PESA isn’t going quietly. It still processes more than 30 billion transactions annually, worth over KES 38.29 trillion ($296 billion), and serves 34 million users. But it’s no longer operating in a vacuum.

Another major change is coming from the CBK’s new payments infrastructure, the Fast Payment System (FPS), which is under development. Inspired by India’s Unified Payments Interface (UPI), the FPS aims to offer instant, cross-platform payments between banks, fintechs, and mobile money wallets. 

It’s being designed in partnership with India’s NPCI and, if successful, could radically reshape how digital money moves in Kenya.

By the time FPS is live, possibly by 2026, it may deliver what regulators and consumers alike have been waiting for: a truly level playing field.

The case for Kenya’s mobile money resilience is now about who adapts faster, and right now, Airtel is doing just that.

The post Safaricom’s Grip on Kenya’s Mobile Money Market Weakens as Airtel Gains Ground appeared first on Tech | Business | Economy.