Equity Bank has lowered its transaction fees on Paypal as the bank focuses on growing revenue from its international money transfer platforms.
The bank says customers using the international money transfer Paypal will pay a minimum of 60 shillings and a maximum of 1,000 shillings.
The review in withdrawal charges is seen as an attempt by Equity Bank to tap into the e-commerce segment.
The battle for customers is fast moving from the streets and highways to the cyber-streets.
This is evidenced by the double digit growth of online transaction with multiple players angling for a piece of the e-commerce pie.
This market segment is growing at a rate of 30 percent annually according to the Communications Authority of Kenya.
However, over 70 percent of shopping in Kenya is still done through physical contacts.
And this is where the battle for the online billions is now turning. In 2013, Equity Bank partnered with global online payment solution Paypal to offer cash transfers and payment services for Equity Bank customers.
However, the growth of the service has been hampered by long withdrawal days which used to be 10 days and high transaction costs.
To lure more clients, Equity Bank has reduced withdrawals period to 3 from 10 days and lowered transaction fees.
The bank says customers using the international money transfer Paypay will pay a minimum of 60 shillings and a maximum of 1,000 shillings.
Currently, the minimum withdrawal stands at 5,000 shillings while the maximum withdrawal is 1 million shillings.
Equity Bank seeks to exploit PayPal’s global reach to tap into its customer base of more than 200 million users based in over 190 countries around the world.
Mid last month the bank said its banking on online transaction to grow revenue.
Equity Bank recorded a 132% increase in the volume of transactions across its international money transfer platforms.