PayPal is an online payment company based in the USA, which enables electronic transactions to replace the usage of cheque and money orders. It was introduced in 1998 as Coffinity and after a few years, it was given subsidiary by the online shopping giant eBay.
Initially, the company developed software for handheld devices and in the year 1999, it introduced online money transactions with the collaboration of Elon Musk’s X.com. In 2002 PayPal was acquired by eBay and the userbase increased substantially. In this article, we are going to see how to use PayPal in Saudi Arabia.
Why is PayPal a good platform for money in Saudi Arabia?
Every process in Saudi Arabia has almost been digitized. Now payments can also be digitized using PayPal for the money transactions. It has the advantage that you don’t have to disclose your personal banking details to the merchants online every time you pay for them.
You can use credit or debit card to load money into your PayPal account. The merchant can directly send their invoices to the customers using PayPal service. With the help of PayPal, you can transfer even smallest amount of money to others without waiting in lines in the banks.
In Saudi Arabia currently, there is no banks support the transfer of money from PayPal to the bank account. In that MENA region, only Qatar National Bank and Cairo Amman Bank of Jorden, support PayPal direct transfers to the bank.
Adding money to the PayPal is called as an instant top-up. It is not always necessary to do top-up your account to spend money, PayPal lets it to be debited from your bank account. Here PayPal served as a security layer in the transaction process.
PayPal currently supports 26 type of currencies, but SR(Saudi Riyal) is restricted which may change soon.
Creating an Account:
You can create a new account free of cost. You can sign up either with a computer or through the mobile app. While signing up your email id and password is required. Your account will be very secure if you set a strong password. To sign up for the accounts,
1. Go to the site: PayPal Arabia Sign up. In this, you select the language as Arabic in the list of nations shown.
2. Click on the signup option.
3. Select whether you are opening an account as individual or business account.
4. Fill in the personal information.
5. Link bank account.
6. Add credit or debit card(Optional)
After signing up successfully, log in to your account. Don’t choose to add credit or debit card initially. Select the link bank account option. You have to enter the details of the bank in the respective fields shown. You will be sent a small amount of money($0.01 to $0.99) twice to your account, which you need to enter in the verification box on PayPal page. Usually, their deposits take about 2-3 days to get credited to your account.
Fee for PayPal:
Within the US, PayPal doesn’t charge for the transactions using the available balance and using the linked bank account. However, if you are sending money using debit or credit card you have to pay a fee of 2.9% + $0.3.
But in the case of Saudi Arabia, you have to pay $5 to transfer money from the PayPal account for your VISA card. Up to $3000 transactions, you need to pay 4.9% with an additional charge of $0.3. If you are having transactions above $3000, it is better to get merchant rate of 3.9% fee.
Benefits of PayPal
- There is no need to enter your card numbers again and again, which is sensitive data
- No need to add a beneficiary and wait for the transaction. You can just use the email id of everyone as equivalent to account number.
- No need to wait in the queue to send money to others
- An app for iPhone is available
- There are special discounts given when paying through PayPal.
In conclusion, After reading this article, you will have a better idea about what PayPal in Saudi Arabia is and how to use the PayPal services.