Home > Business Software and Tools > Unlock Online Payments With A UAE Paypal Account

Unlock Online Payments With A UAE Paypal Account

Nov 3, 2023 | Business Software and Tools

Are you looking to take your online shopping or business transactions to an international level? Here’s where opening up a PayPal account comes in.

We walk you through setting up a UAE PayPal account, linking your bank account, getting to know the fee structure, and understanding the safety measures. You’ll be able to harness the power of this secure digital wallet and make your international transactions a breeze without the hefty bank charges.

You’ll also get insights into the various features and services PayPal offers to streamline your business operations. Let’s get started on unlocking online payments by creating a UAE PayPal account and revolutionising the way you transact.

[virtuzone_banner id=cost-calculator]

Is PayPal available in the UAE?

Yes, PayPal is available in the United Arab Emirates (UAE). If you’re a resident of the UAE, you can use PayPal just as you would anywhere else in the world. All you need to do is download the PayPal app, enter your personal information, and link your bank account.

PayPal UAE is a secure online banking service that lets you pay for items with a secure online account.

You can use PayPal to receive and withdraw money to pay for items. Your money will be deposited straight into your PayPal account; then, you can access it to make purchases. It’s a safe and secure way to conduct business from anywhere, knowing that your money, as well as your customers’ money, is safe and secure. PayPal makes sending and receiving money simple.

PayPal offers several features and capabilities, including facilitating payment for goods and services online or in person, accepting payments, enabling the sending and receiving of funds, and providing digital security and payment security choices. PayPal sets a variable or a fixed fee for their services. Sometimes, it can be a mix of the two.

PayPal offers various payment solutions for businesses, including online invoicing and PayPal Checkout, which can help drive business growth and address customers’ payment needs. PayPal provides tools and resources to simplify business operations, such as PayPal reporting, dispute management, and the PayPal Resolution Center. PayPal also offers a personalised payment link called PayPal.Me, which makes it easy and fast to get paid.

Screenshot Of Paypal Resolution Centre Webpage

Paypal’s Presence In The UAE

PayPal has launched its first Middle East and North Africa (MENA) office in Dubai to expand its regional presence. The company currently has one million customers in the MENA region and a 5% market share of the region’s e-commerce industry. PayPal aims to increase its number of merchants in the area to 25,000 by 2050. The company also hopes to attract more of the Middle East’s 110 million internet users and 290 million mobile subscriptions.

Operating in 190 markets worldwide, PayPal made $4.4 billion in revenues last year. It has an 18% share of the world’s e-commerce market.

PayPal’s only competitor in the MENA market is Cash On Delivery (COD), which accounts for over 80% of e-commerce in the region. PayPal aims to change this by providing a secure online payment option. PayPal has never been hacked since its inception in 1998, and it has a lower fraud rate than other e-payment gateways. The company adds an additional layer of security, which ensures the safety of customer financial information.

PayPal has partnered with logistics provider Aramex to support its Shop and Ship service, allowing consumers to have their products shipped to the region. The Central Bank of the UAE (United Arab Emirates) is planning to issue a CBDC (Central Bank Digital Currency) for domestic and cross-border electronic payments. This will be part of its Financial Infrastructure Transformation Program.

How To Open a PayPal Account in the UAE?

Initiating a PayPal account in the UAE is straightforward and can be completed in a few minutes. Whether you’re an individual who enjoys online shopping or a business proprietor seeking a secure online payment system solution, PayPal is a viable option.

Your First Step To Opening A Paypal Account

The first step is to determine the type of account you require. Both personal and business accounts offer secure online transactions and convenient payment options. Still, a business account may incur some transaction fees. After deciding on your account type, visit the official PayPal website to begin the account creation process.

During this process, you’ll be asked to provide some essential details. These include your debit card information and your Emirates ID details. The latter is crucial for identity verification and ensuring the security of your account transactions. You’ll also need to confirm your email address, which they’ll use for account-related communications.

Your Second Step To Opening A Paypal Account

Once your account is ready, you can link it to your bank account. This is done by navigating to the Wallet section on the PayPal site and following the instructions provided. Linking your bank account to your PayPal account not only simplifies withdrawals and deposits to withdraw funds but also enhances the security of your transactions.

Before you can start withdrawing money from your PayPal account accounts PayPal itself, you’ll need to verify it. Verification comes with several perks, including higher withdrawal limits, improved security, and access to buyer and seller protection. It also expands your payment options, making it easier for you to send and receive money.

Finalising Your Paypal Account

Transferring funds from your PayPal account to your linked bank account is straightforward. You can do this either through the PayPal mobile app or by transferring funds online through the PayPal website. However, there might be fees associated with transferring funds or withdrawing funds, and it could take a few business days for the funds to show up in your bank account.

While PayPal offers a secure and convenient way to make online transactions, it’s important for you to be aware of the fees and charges that come with its use. These can include transaction fees, fees for instant bank transfers, and charges for international transfers or currency conversion. You can find detailed info about PayPal’s fee structure on their website.

If you’re looking for alternatives to PayPal, there are several other online payment services available in the UAE. These include Google Pay, Apple Pay, and Skrill, all of which offer features similar to PayPal.

Screenshot Of Paypal App

Using Your PayPal Account in the UAE

In the UAE, PayPal provides a secure and convenient platform for online transactions.

How to Link Your Bank Account or Credit Card

To connect a bank account or credit card to your PayPal account in the UAE, you need to follow a few simple steps. If you’re using the web, navigate to the wallet, then click on “Link a card or bank,” then “Link a bank account.” Search for your bank and follow the instructions to add your bank account. If you’re using the app, tap the menu icon, go to “Banks and cards,” and then “Banks.” Again, search for your bank and follow the instructions to link your debit card details and bank account. It’s a straightforward process designed to make your online transactions as seamless as possible.

PayPal’s Conversion Rates

When you’re making payments or sending money internationally, PayPal automatically converts your currency to the local currency. However, you should be aware that PayPal’s currency conversion rates may include a markup applied to the wholesale exchange rate. This means that you might pay more than you expect when sending money abroad or purchasing from a seller in a different currency.

PayPal charges different fees for different types of transactions, such as purchasing from a seller in another currency, sending money to a friend or family member in a foreign currency, or converting your PayPal balance from one currency to another. For businesses, these fees can add up, with transaction fees as high as 5% of the original sum, as well as a PayPal currency conversion fee.

Tips on Sending and Receiving Money

When sending and receiving money, it’s essential to compare exchange rates and fees to ensure you’re getting the best value for your transactions. There are ways to reduce PayPal conversion fees and save money when exchanging currencies. For instance, you can use alternative international transfer services such as AirWallex, which offers lower fees and transparent exchange rates.

Local payment schemes, such as the American ACH or the European SEPA, are cheaper alternatives to PayPal or SWIFT payments. Virtual multi-currency IBANs and virtual local accounts are also ways to reduce PayPal fees and currency conversion fees. Digital payment platforms like Amnis provide multi-currency IBANs and local accounts (which are easy to set up), so you can profit from local payment schemes.

When conducting international transactions, it’s essential to research and choose the best option based on your specific needs and preferences. Neobanks like Wise, Revolut, N26, and Starling Bank offer online banking solutions with competitive rates and features. Opening an international account can provide access to local payment schemes and reduce fees.

PayPal Fees in the UAE

Understanding the fee structure is crucial when utilising PayPal in the UAE.

The primary currency for transactions in the UAE is USD. The charges for domestic payments are 3.4% + $0.30 USD, and for international payments, it’s 3.9% + $0.30 per transaction.

These charges are applied every time you receive a payment, so it’s essential to incorporate them into your pricing or budgeting.

Withdrawing Funds From Paypal

For withdrawing funds from your bank card to your UAE PayPal account, you can opt for a credit card, debit card, or prepaid card, as well as your bank account. If your business is registered in the UAE, but you’re not residing there, PayPal might request business documents for verification.

PayPal provides two distinct methods for international transactions. You can transfer money directly to another PayPal account. You can also send money to a recipient’s account via Xoom, a PayPal-owned payment service.

The charges for these services vary. For direct transfers to another PayPal account, PayPal levies a transaction fee of 5%, with the minimum fee being $0.99 and the maximum fee being $4.99. If the transfer is through a credit or debit card or PayPal credit, there will be a funding fee of 2.9%, as a fixed fee based on the currency used is also applied.

Screenshot Of Xoom By Paypal Website

Are There Additional Charges When Using Paypal?

Additionally, PayPal charges a currency conversion fee of 4.5% or a different percentage amount if disclosed during the transaction. This is due to PayPal’s specific process for setting its exchange rate, adding a percentage to the wholesale rate quote received from their bank. When transferring money from a PayPal account to a personal bank account, PayPal automatically converts funds into the recipient’s bank’s local currency.

These fees and the exchange rate should be considered when making international transactions with PayPal. Tools like Tipalti’s fee calculator can help calculate PayPal’s international fees. However, while PayPal is a convenient option for international payments, other money transfer services may offer different fee structures and options. Factors such as transaction amount, frequency, and currency should be considered when deciding which money transfer service is the most cost-effective.

How To Lessen Transaction Fees From Paypal

There are ways to lessen PayPal’s international transaction fees. For instance, funding transactions using a PayPal account can help avoid additional fees from credit cards and debit cards. Making larger payments can also reduce the relative cost, as the fee is capped at $4.99 if you are transferring money directly to another PayPal account.

Lastly, PayPal and other payment processing fees can be deducted from any taxable income at the end of the year, providing some tax savings. However, as your business grows, you may need to add other payment options.

Is it Safe to Use PayPal in the UAE?

PayPal’s global reputation extends to the UAE, where it’s appreciated for its user-friendly interface and robust security measures. However, it’s crucial to be aware of certain restrictions and limitations, such as withdrawal limits and transaction fees, specific to the UAE. Therefore, reviewing PayPal’s terms and conditions and fee structure for UAE users is advisable before commencing usage.

Despite PayPal’s secure platform, users must remain vigilant against potential scams. Advanced fee scams, scam emails, “friendly name” email scams, phishing websites, fake hyperlink scams, fake charities, and overpayment scams are common tactics employed by scammers targeting PayPal users. To safeguard against such scams, ignore suspicious emails with links, directly visit the PayPal website to check for any issues, install antivirus software to protect against malware, and report any suspicious emails or links related to PayPal.

PayPal’s Purchase Protection program is another layer of defence against fraud. If a transaction qualifies for Purchase Protection, users may be covered for the total purchase price of online purchases, plus the cost of fees like shipping charges, in case of fraudulent activity.

Lastly, it’s important to remember that PayPal accounts are country-specific. If you relocate, you must open a new PayPal account in your new country. Before moving, ensure to withdraw funds, resolve issues, remove cards and bank accounts, receive payments, cancel subscriptions, and close the old PayPal account.

The Last Word

Creating and utilising a PayPal account in the UAE is a breeze, with its easy-to-understand steps and user-friendly interface. With its robust security measures, PayPal makes for an attractive online payment method for individuals and businesses alike. However, it is imperative to stay informed about its fees, restrictions and benefits.

Remember, while PayPal is a convenient and secure payment solution, always remain vigilant and proactive with your online security. With these insights in mind, you’re now well-equipped to navigate the world of PayPal in the UAE. Happy transacting!

[virtuzone_banner id=free-consultation]

Contact Us

Start your business today

Try Chat VZ