Starting April 21, 2025, PayPal is rolling out a series of changes that make it significantly more expensive, and frustrating, for Africans to use its platform. From new withdrawal fees to steeper charges on international payments, the message is clear: African users are no longer a priority.
What’s changing for PayPal users in Africa:
Higher Fees on International Payments: A flat 4.90% + a fixed fee for receiving payments from abroad.
New Withdrawal Fees: Smaller withdrawals will now attract an additional fee, making it more expensive to access your funds in lower amounts.
Withdrawing to U.S. Bank Accounts No Longer Free: Now incurs a 3.00% fee.
Dispute Fees Introduced: Even if you win a payment dispute, you’ll pay $8–$16.
Extra Charges for Using M-Pesa or Local Banks: A new “third-party provider fee” applies.
These changes come on top of PayPal’s already-criticized habit of freezing African accounts without explanation or recourse.
But Africa’s digital economy is resilient and innovative. From freelancers and online merchants to fintech startups and cross-border traders, many are already turning to better, homegrown alternatives.
Top Alternatives to PayPal for Money Transfer in Africa
Here are some African-focused fintech platforms providing easier, faster, and cheaper money transfer services:
💳 Payd HQ – For Freelancers and Gig Workers
A rising solution for African freelancers receiving international payments. Payd lets users generate global payment links and withdraw funds in local currency without hidden charge.
🏦 Hurupay – U.S. Bank Accounts and Crypto Payments
Hurupay offers virtual U.S. bank accounts to African users, enabling them to receive funds from global platforms. It also facilitates fast crypto-to-cash transfers.
🛍 Pesapal – For E-commerce and Retail Payments
Ideal for merchants across East Africa, Pesapal supports card payments, mobile money, and in-store POS systems, making it a robust alternative to PayPal for businesses.
💰 Flutterwave, Paystack, Cellulant, Peach Payments – Payment Gateways and APIs
These African fintech giants power thousands of merchants and platforms with tools for processing card, bank, and mobile money payments across borders.
🌍 NALA – For African Diaspora Remittances
Designed for Africans abroad sending money home, NALA offers transparent fees, competitive exchange rates, and fast delivery to bank accounts and mobile wallets.
🔄 Eversend – Multi-currency Wallet & Exchange
Eversend lets users hold, send, and exchange multiple currencies in one wallet. It’s perfect for Africans who earn in USD or EUR and spend locally.
💼 Tanda – Wallet-as-a-Service Platform
Tanda enables African businesses to build custom wallet infrastructure, perfect for startups and financial service providers.
🪙 Kotani Pay – Crypto ↔ Fiat Conversion
Kotani Pay connects blockchain-based payments to real-world use cases—allowing for seamless conversion between crypto and mobile money.
Why It Matters
Africa is home to a young, fast-growing digital economy. Freelancers, creators, remote workers, and entrepreneurs are increasingly working across borders—but they need infrastructure that supports them.
PayPal’s latest policy shift is a step backward. But African fintechs are proving that when global platforms fall short, local innovation can rise to the occasion.
Final Thoughts
If you’re an African user tired of PayPal’s high fees, account freezes, and lack of support, now is the time to explore smarter alternatives. These platforms are built with the African user in mind—offering speed, transparency, and most importantly, respect.
Know more great platforms? Drop them in the comments and let’s build a better payment ecosystem together.
