PayPal Blocks M-Pesa Linked Accounts Over Fraud

Update 1:

Notification that showed account is limited/suspended is no longer there. I’ve confirmed this from three of my friends’ accounts. Maybe issue has been solved:

Update 2:

All services are back. Though there’s still no official communication from PayPal on what happened.

Original:

If you, like me, use PayPal for most of your online transactions, you most likely jumped on the M-Pesa – PayPal linking that was announced back in April of this year. And you’ve definitely been transacting on the platform by sending cash from M-Pesa to PayPal or vice-versa.

Well, most of us who linked our PayPal to M-Pesa through the TransferTo collaboration with Safaricom woke up to notifications that our accounts are now limited. We cannot use PayPal anymore. Apparently, so claims PayPal, certain activity on our accounts is inconsistent with PayPal’s User Agreements. The notification hasn’t pointed out what exactly.

Safaricom have through Twitter responses said they’re aware of the issue and PayPal should respond and elaborate on the issue. I’ve seen no official response from PayPal anywhere.

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What we know so far:

  1. This affects some people, not everyone seems to have the notification.
  2. We cannot send or receive money
  3. Any bank/credit card information on our accounts cannot be removed or re-used to sign up for another PayPal account
  4. Any balance on PayPal is NOT usable for the next 180 days. Thereafter PayPal will email instructions for WITHDRAWAL.

So, from everything there arises questions upon questions:

  • What happens to people who transact daily through PayPal? What of their business?
  • Who is to blame? Because as it is widespread, either PayPal, Safaricom or TransferTo are on the wrong
  • When will this be resolved? And will people be able to resume normal functioning?

PayPal Blocks M-Pesa Linked Accounts Over Fraud

Have you been affected? Have you ever deposited or withdrawn money from PayPal through M-Pesa?