By SME Digital Correspondent
Equity Bank has revealed that income through online payment platform PayPal, now accounts for close to 70 percent of its diaspora banking revenue.
This comes after the upgrade and enhancement of PayPal system which is now able to process customers’ withdrawal transactions within 3 business days, down from the previous 8 business days resulting in an increase in the volume of transactions.
The latest statistics by the Bank indicate that the number of PayPal users increased by 47 percent from December 2016 to March 2017 while the volume of transactions also increased by 21 percent in the same period.
Commenting on PayPal’s great performance during the 2016 Full Year Results, Equity Bank Group CEO, Dr. James Mwangi said that the Bank is concentrating on global money transfer as an alternative income stream. He indicated that the success of the Bank’s innovation with the PayPal platform has shown significant growth depicting the power of fintech on fully automated processes.
The service allows Equity Bank customers with a PayPal account to receive payments in 25 currencies from PayPal’s customer base. It also allows the bank to exploit PayPal’s global reach to tap into its existing customer base of more than 188 million active accounts based in over 200 markets around the world.
According to the recently released Internet World Stats report, Kenya is a market poised for immense e-commerce growth over the next five years. Recent figures show the country has witnessed positive growth in data Internet subscriptions to reach over 37.7 million subscriptions as of March 2017.
Another reason why people prefer using PayPal is the fact that it is accepted on multiple platforms and it is very secure, in that once you’re registered and verified, you can buy items and make payments locally and internationally without having to enter your credit card details each time or requiring one to share their financial information with the sellers.
The growth of e-commerce has enabled SMEs to be able to take advantage of the digital commerce wave and grow into larger businesses. The partnership between Equity Bank and PayPal is aimed at further giving customers the power to grow and manage their businesses more conveniently and securely.