Equity Bank is seeking to encourage more usage by businesses and consumers already using PayPal as well as increase their engagement level with the PayPal-equity platform by continuing to create value for users.
The lender has announced a review of withdrawal charges on its Equity PayPal Withdrawal service. The tariff which previously the bank was charging a constant transaction fee of 1.5% of any amount withdrawn, will now see users pay as low as 1% on withdrawals made from their PayPal account. The new tariffs will be effective as from March 2018.
The latest financial statements by the bank indicate that the volume of PayPal transactions increased from 3.6B from March 2016 to 6.2B as at March 2017. The overall remittances from diaspora skyrocketed to reflect a growth of 132%.
Equity bank is the only Kenyan lender where PayPal users in Kenya can make withdrawals direct to bank accounts within 3 working days as opposed to 8 working days in the previous years. PayPal service with Equity allows customers to accept payment globally and withdraw locally.
The new rates for withdrawals from PayPal to Equity bank accounts will see customers withdrawing $5001 and above being charged 1% of the withdrawal amount, between $2001-5000 will be charged 1.125%, between $1001-2000 will be charged 1.25%, between $501-1000 and customers withdrawing $500 and below will be charged 1.5% of the withdrawal transaction respectively as indicated below:
|Withdrawal amount in USD||5,001>||2,001-5,000||1,001-2,000||501-1,000||<500|
|Fee||1% of the Withdrawal amount||1.125% of the Withdrawal amount||1.25% of the Withdrawal amount||1.375% of the Withdrawal amount||1.5% of the Withdrawal amount|
“Financial inclusion continues to remain at the core of our business strategy. We have listened to our customers and introduced new tiered withdrawal charges,” said Equity CEO while announcing the new development.