With the growth of internet shopping and e-commerce in Saudi Arabia, both consumers and merchants require new payment methods such as PayPal.
Wondering how you can use PayPal in the MENA region? We put together a quick guide on everything you need to know about using PayPal in Saudi Arabia.
Why use PayPal?
It’s a convenient and secure option to pay and get paid online, by creating an account. It doesn’t require shoppers to share private financial information with the seller, since you can pay from your PayPal pre-loaded balance (which you can fund directly from your bank account or linked credit cards).
Merchants can send invoices to customers directly from their account (without a website). They can also add a ‘Buy Button’ to their website and tap into PayPal’s network.
Who can use PayPal?
Both the merchant and the consumer can use PayPal. The consumer will sign up for an individual account and the merchant will open a business account.
How to open a PayPal account?
Log on to the Paypal Saudi Arabia to sign up and open an account. Merchants are also required to add a payment instrument to their accounts to withdraw balances.
How to transfer money into a PayPal account from a bank account?
While this feature is currently not available in Saudi Arabia, PayPal is in discussions with banks here to enable this service.
Currently within MENA, the service is only available in Qatar (with Qatar National Bank – QNB) and in Jordan (with Cairo Amman Bank).
Generally, the process of transferring money into an account is termed as an ‘Instant Top-up’, where consumers can top up their PayPal account from their bank account. The consumer can top-up their account with the exact amount of money they want to spend, adding a layer of control to their spending.
However, it’s not necessary for the user to pre-pay or top up their PayPal account to do their transaction. It acts as a layer of security between any bank’s card (debit, credit, pre-paid) and the Internet, which means shoppers can buy online and it will debit their funding source (the card attached to your PayPal account) for the exact amount being charged by the merchant, based on the currency and the balance they have on the PayPal account.
How to transfer money from a PayPal account into a bank account?
Any company can set up a PayPal account to sell online. Once the merchant sells an item to a user they can withdraw their money from the Paypal account into a bank account of any bank in USA, or in Cairo Amman Bank (Jordan) or in Attijariwafa Bank (Morocco). The money can also be transferred to a Visa card.
For Saudi Arabia, PayPal is currently working on enabling multi-bank withdrawal, but details for this have not yet been released.
What currencies can be used on PayPal?
PayPal allows users to keep balances in 26 currencies, including the major currencies. However currently the Saudi riyal (SAR) is restricted. This may change soon.
PayPal also helps people and businesses to accept and make payments in more than 100 different currencies and to withdraw money from their PayPal account to their bank account in 57 different currencies.
What are the fees for transactions?