If you have been on the lookout on how to receive online payments in Uganda or how to withdraw your funds, this is a guide I would recommend. I suppose you have browsed the whole internet but with no solution only to find a few plagiarized articles here and there.
Well, I have faced the same challenge for a good period of time. I always wanted to write this article on how to receive online payments in Uganda but then, I also didn’t want that it looks like the others you have been reading all over the internet and moreover giving you the same alternatives which probably haven’t been tested by the authors themselves.
Having operated an online store for now about four years in a row, I would like to put my experience for you by writing a definitive guide on how to receive online payments in Uganda, not only that but also, how to open, operate and receive your PayPal payments.
I have looked out for the most convenient ways to this in the last couple of years. The challenge here may not be getting the funds into your online account. Let’s say you’re selling something on Amazon. Like, i have sold copies of my email security ebook or getting funds into your payment gateway.
The challenge is about getting the funds in your Ugandan bank account or local payment processor. As this is one of the biggest challenges I have faced in the last couple of years. Imagine, if you aren’t going to purchase any product or service online.
Let’s say ordering something on Aliexpress, eBay or purchasing a domain name, there are very few or not even any business in Uganda where you would check in physically and ask if they will accept your Paypal money, or from any other payment gateway.
Most or if not every store or business in Uganda requires you to make cash payments. The few that will accept card payments ie, using your credit or debit card (Visa, MasterCard, American Express, Payoneer) will limit you to using it on… Click To Tweet
This means that you will be exempted from using your card to make payments through available online means. Ie, ordering a dress or a pair of headsets from an online store of your choice.
Below is a screenshot of a chat I had with one of Posta Uganda representatives the day I wanted to pay for a parcel shipment using part of PayPal account balance.
So in this guide, I would like to give as many details as possible so as to enable you to have your funds in cash and here I mean getting your account balances from your PayPal account, or from any payment gateways.
NOTE: I have personally in one way or another tried out all the suggestions I write here. Most of them have been through practical experience gained in the last years carrying out transactions online. In no way will I write or recommend something I haven’t tested. And if any, I will also mention.
Having that said, let’s dive in. I will split this guide on how to receive online payments in Uganda into two phases.
Phase one will be on how to receive/withdraw PayPal payments/balances in Uganda and phase two will be on how to receive/withdraw payments from merchant accounts and several other payment gateways.
List Of Contents
- 0.1 1. How to Receive/Withdraw PayPal Payments In Uganda
- 0.2 Let’s see how to open, operate and receive Paypal payments
- 0.3 Five Ways How To Withdraw Paypal Payments In Uganda
- 1 2. Receive Payments From Online Merchants and Payment Gateway
1. How to Receive/Withdraw PayPal Payments In Uganda
You have in some way or another heard of PayPal. It’s arguably the most trusted online payment gateway in the world. In simple terms, you can use PayPal to send and receive payments to friends and family, pay into online stores, book airline tickets (see one of my ticket bookings) just to mention but a few.
As per writing this article on how to withdraw and receive online payments in Uganda, PayPal accounts holders here (Uganda) aren’t in the position to be paid/receive money into there account.
The trick used by PayPal users in Uganda is to open an account based in another country where PayPal permits receiving and withdrawing account payments ie in Kenya.
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Let’s see how to open, operate and receive Paypal payments
for those leaving in not permitted countries. (this is illegal)
Step 1: Open/sign up PayPal account based in another country where PayPal permits receiving of funds into your account.
Step 2: Verify your account with a phone number (with that country code) and email.
Step 3: Then start to accept payments. Please make sure NOT to link a credit card/debit card for a bank operating in a non permitted country into your PayPal account that’s based in another country. Paypal will decline your account since they only verify your card basing on its holder/bank address.
Step 4: When the payment/s jet into your account, perhaps from a friend based in another country, business or a donation. Then here is where the hustle begins. Getting your funds into your Ugandan bank account, mobile money, western union or physical cash.
Five Ways How To Withdraw Paypal Payments In Uganda
Note: Since your PayPal account isn’t linked to any bank or card due to address verification, you’re not in a position to send this money to any other account or to friends since PayPal will require you to add a source of funds normally a credit/debit card or bank account.
However, there is an option for individual PayPal account holders. In your account > under settings > source of funds, you simply change that to PayPal balance. For business merchant PayPal account holders, there isn’t this option as of writing this guide.
Here are the five ways to withdraw PayPal payments.
#1. Oracle Exchange
Oracle Exchange is a retail business, which sells, buys and exchanges digital ‘currency’ units online. So basically, you will order a service from them such as paypal to western union, PayPal to money gram, PayPal to a credit card or even PayPal to money gram. This means that you will use your PayPal balance to actually order and pay for any of those services.
In the process of ordering, let's say, you will receive your PayPal funds via western union, you will be required to order for the service PayPal to website union. You enter the amount you want to receive in USD, then add their commission… Click To Tweet
These guys have been at this thing for a while. I have used there services and I would recommend. Via just an email, I managed to order a withdraw of an amount from my PayPal balance. Off that, I paid 10% commission plus a few charges I realised as a conversion from USD to UGX into my mobile money account.
I would again stress that I could not use my merchant paypal account to withdraw the funds, so what we did was actually ordering a service from them via an online store equivalent to the money I actually wanted. Then, their team offered it as payment. This was a win-win situation for both sides. Kudos!!
Payzug is also a Ugandan based online payment platform developed by Pro Media Systems (U) LTD. With this platform, you’re able to signup for an account. The account avails you with a float. The float is actually the money you’re able to withdraw. A 10% commission is paid to them automatically.
The downside of this system is that it limits you on the amount of money you can withdraw at a particular period of time as the float keeps changing. However, one thing I would say is that they’re genuine. I personally tried a couple of transactions which failed since I was ordering exactly the float limit and hence the transaction couldn’t get through.
However, their team always issued a refund of the funds into my PayPal account. It should also be noted that once the transaction is a success, it is instantly issued to your mobile money account.
#4. ePaySwift Uganda
Chuchi Enterprise Ltd a registered company in Kenya trading as ePaySwift has been at this game for long. They have processed successful withdraws for Paypal and Payoneer users in Kenya. ePay Swift enables Kenyans to withdraw money direct to their Mpesa accounts.
The good news here is, ePay Swift has launched in Uganda and you can as well use their service to withdraw your funds directly to your mobile money accounts (MTN and Airtel). Payments are processed daily Monday to Saturday. Yes, a commission of 10% + 3 of your transaction will be leaved.
#5. PayPal to Mpesa
For those of you operating Kenyan PayPal accounts, there is good news too. Paypal partnered with Transfer to and Safaricom to bring an amazing experience if you own a Kenyan Paypal account and also registered on Mpesa. You can directly withdraw your funds from Paypal to Mpesa with no third party and no paying commissions. This service is only limited to Kenya Paypal users. Payments are withdrawn to your Mpesa within two hours. If you wish to use this service, here is a step by step guide to register for Paypal – Mpesa service by Sheeroh.
The Other Ways on How To Withdraw Paypal Funds / Money in Uganda
1. Paypal Funds into Bitcoins and then exchange Bitcoins into your local bank or into your visa/MasterCard, I haven’t tried out this myself. But according to reviews in different forums, I read that it was a success to the users.
2. Signing up for a Payoneer MasterCard. The Payoneer system simply works like, Sign up to Payoneer > Receive Payments to your Payoneer account from companies worldwide > Withdraw funds to your local bank or via Prepaid card.
In this case, by simply owning a Payoneer MasterCard, you can link it up with your PayPal account. With this, you are able to withdraw your PayPal funds directly onto your Payoneer MasterCard instantly. You can then withdraw your money in Uganda anywhere on an ATM that accepts MasterCard.
2. Receive Payments From Online Merchants and Payment Gateway
If you’re running an online store, let’s say a clothing store, supermarket, website hosting and domain registration store, money transfer, just to mention but a few. You need a payment gateway.
A payment gateway simply provides you with an Application Programming Interface (API) which you have to integrate with your online store and begin to seamlessly accept and receive payments. In order to start receiving payments, one needs to sign up for a merchant account with the payment gateway company of their choice.
In Uganda, if you’re looking at receiving payments from buyers who use mobile money, credit and debit cards, there’re many players in the industry providing you with simple and secure payments to have this solved. I have personally tried out services from Pesapal, Beyonic and Dusupay.
With pesapal, you are in the position to signup for a merchant account, and here you will be able to get an API to integrate with your online store. For those who use WordPress as a cms, you are catered for already with a cool plugin that you simply have to install in your WordPress plugin area.
Thereafter, you’re able to add bank details which will be required in order to transfer funds from your pesapal merchant account into your bank account. Other payment gateway companies available in Uganda are, Direct Pay Online, Instapay just to mention but a few.
Update 25th- July 2018
Unfortunately, you can no-longer use your Payoneer Mastercard to withdraw funds from your Paypal as Paypal no longer accepts withdraws associated with Payoneer bank accounts. The best you can do is to link your master card to another marketplace that accepts mastercards.
I hope this guide on how to receive online payments in Uganda has in some way helped you. Receiving your hard earned money from service providers worldwide including ad agencies, eCommerce marketplaces has never been easy.
However, i hope that while reading this guide, you have got an idea. I may not have covered your specific area of interest but am certain this will save you lots of time. If you feel that i left out anything or something needs to be corrected, please don’t hesitate to hook me up. Also, i welcome your feedback in the comment box below.
Disclaimer: I am not responsible in any way whatsoever on what happens while carrying out your transactions. This article is only for knowledge and educational purposes and NOT in any way am I recommending a specific service or product. Therefore, you are responsible for your own actions and decisions.