Does Paypal Work in Nigeria? Here’s How to Open an Account, Verify and Use the Service

PayPal is very much available in Nigeria and Nigerians can open personal accounts to send money, make payments or shop online. However, while the option of receiving money with a personal account is not unavailable, one can receive PayPal payments through a PayPal business account.

To be able to use the payment processor, you must first open a PayPal account by signing up here and getting your account verified. 

There are numerous online payment platforms available all over Nigeria today, and Paypal is one of them. Many of their services facilitate easy ways to pay even if you own a business that you have created recently. Paypal found its feet among the online payment platform, and since its inception, it has been among the best choice for some users.

Some other giants in online payment in terms of transactions are VisaNet, MasterCardNet, JCB Network, China UnionPay, and American Express net. Collectively they accounted for about 99.9% of all online payments, totaling about US$235.7 billion.

Paypal is widely Used as an Alternative Payment Processor

Paypal is one of the most widely used alternative payment processors globally. They are accepted by millions of online businesses for processing payments. Some of the uses include paying hotel bills, shopping online at places like eBay and Amazon, transferring money to friends and family members, sending money internationally, sending money to mobile phones, reloadable debit cards, and even paying utility bills. It is a global payment system that offers personal accounts, business accounts, and a merchant account (e-commerce). To small businesses, it averts the cost of building up their own credit card processing system and purchasing merchant accounts with their banks.

Paypal Was Introduced in Nigeria in July 2014

PayPal works in Nigeria but with a little restriction on receiving funds with your PayPal personal account. The online wallet service, which was registered in the United States of America, also hit an official recognition to be used in Nigeria in July 2014. As it was observed that Nigerians who have access to use the service are those that reside outside the country where the service is enabled. But now it is fully operational within the country.

PayPal Usage Restriction in Nigeria

Since the wallet was recognized as a means of sending and receiving funds in Nigeria to date it has restricted a particular service which is the inability to receive funds using the individual PayPal account. The reason is to protect the service rendered to its customers as the access to such services in the country can pose a security threat.

To receive funds through Papal in Nigeria you have to open a business account. However, with a personal account, one can actually transfer money, fund the account, shop online, and do other PayPal financial tasks, which do not relate to receiving funds online through the platform.

The Importance Of Using The PayPal Payment Platform

As one of the most popular tools for transferring and receiving funds online, the company pays more attention to its security towards ease of service and protection of customers’ transactions. There is no online platform without any form of risk, but it depends mainly on the kind of service one is looking for with Paypal. Some potential threats Paypal guard against in online transactions that ensure their efficiency are:

Data Security

The information you exchange with the legitimate PayPal site is encrypted and hidden from prying eyes. The site uses industry-standard security features that you would expect from a large financial institution, and PayPal also rewards “white hat” hackers. It may be safer to use the platform for your security than to give your credit card number or bank account information directly to a website you’re shopping on. If something happens, you won’t need to cancel your cards and update them all.

PayPal Purchase Protection Policy

If you’re concerned about fraud, PayPal has a Purchase Protection policy that might reimburse you if somebody spends money from your account without you knowing or if you pay for an item that never arrives. It is a full assurance platform that works against fraudulent transactions. Your purchase will be less likely to be fraudulent if you use your credit card because it has purchase protection.

To gain additional protection, use your credit card as the funding mechanism for your PayPal purchases and complete transactions with a credit card. If PayPal does not refund your money, you can try disputing the transaction again with your credit card issuer. Credit cards are not linked to your bank account in the same way debit cards are, so you would have fewer consequences for fraudulent activity.

How to Use PayPal In Nigeria

It is very important to understand how to make use of this payment platform. Since PayPal can be used to shop on websites, send or receive money using an email address. It is paramount to carefully follow the guidelines on creating an account for easy buying and selling online. However, there are two important requirements before venturing into opening a PayPal account which are:

  1. A working PC with an internet-enabled or internet-enabled mobile phone device.
  2. A bank account with a credit or debit card.

Once the above is intact, one can now move ahead with the steps provided below to open a PayPal account.

  • Log in to the PayPal website by clicking here.
  • Tap on the login button.
  • Select sign up.
  • The next page will provide an option to open a personal or a business account. Choose the type of account you intend to open and click on continue.
  • Next is the personal information page. Your name, email address, and password will be required then you click on next.
  • The next page is to complete your address details. Note that the address details provided will serve as your billing address, which will also be the address you will want to receive items. After filling in address details, move down to confirm the user agreement information and the privacy policy by clicking on the open box.
  • Run your phone number verification. An SMS will be sent to you, which helps you have an activated account with PayPal.

Going through the above steps appropriately, one has successfully opened a Paypal account.

Nigerian Banks That Accept PayPal Transactions

In Nigeria, there is no bank that has restrictions on the use of PayPal. Ever since the company started with Nigeria, users have experienced a series of issues which most of them is categorized as lack of proper use. To make use of the payment platform, your bank credit or debit card is required to receive money. If it becomes impossible to add your bank credit or debit card verification to your PayPal account, it doesn’t mean your bank doesn’t accept transactions through the platform. It may be due to the nature of the credit or debit card in which you used.

Below is a list of banks confirmed to accept PayPal with ease. Note that it is not restricted to the banks listed below:

  • Access Bank
  • Guarantee Trust Bank
  • First Bank
  • WEMA Bank
  • FCMB Bank
  • United Bank of Africa

How to Add Nigerian Bank Credit or Debit Card to PayPal Account

To avoid encountering problems in adding your bank credit or debit card to the PayPal account, it is advised that PayPal users in Nigeria should carefully read through the steps and guidelines provided below to set up the bank card in the PayPal account.

  • Login to the PayPal account.
  • Scroll to the Add Card area and click on it.
  • The next page is to add the bank card information and choose the bank card type.
  • Next is the aspect of linking the bank card.
  • After linking the bank card, PayPal will deduct an amount from the bank account. Not to be scared, the money will be returned within 24 hours.
  • The next stage is to verify the PayPal account. A message will be sent to your phone with a verification code to confirm your PayPal account.
  • After confirming the text message on your phone, log in to the PayPal account.
  • Tap on the confirm button to open the bank credit or debit card confirmation page.
  • Input the sent four-digit confirmation code and confirm the card.
  • At this stage, you are required to move back to the dashboard where you confirm will confirm if verification from the account status.

The Need For Paypal Account Verification in Nigeria

PayPal has a special status called “Verified” that you can apply for, which is beneficial in many ways. With a verified account, you can feel safe and secure when you’re sending and receiving funds and proving your identity to other PayPal members. To boost your credibility and the overall security of the PayPal network, the company only accepts payments from Verified PayPal accounts. They only accept Verified PayPal accounts so that shipments are covered under PayPal’s seller agreement. The company makes use of the latest technologies to secure information provided in the accounts, and with it you can never disclose personal information to any customer.

Steps to Verify A PayPal Account

  • Log in to the registered PayPal account.
  • Scroll down to Get Verified on the account overview.
  • Choose the verification method that is easy for you.
  • Input all the required information, and scroll down to continue.
  • Tap on the confirm, and then select submit.

Limitations To The Usage Of The PayPal Platform In Nigeria

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Since the introduction of PayPal in Nigeria, citizens have been wondering when they can enjoy all of the features offered by this payment service abroad. Many Nigerians have created petitions to persuade the company, but this had no effective change on the PayPal Nigeria policies.

Below are limitations one must affirm before registering with one of the world’s largest online payment platforms:

  • If the account is terminated, there is no other option to retrieve the account back.
  • A person is restricted to having one account with PayPal in Nigeria.
  • PayPal accounts in Nigeria are restricted from receiving money from other account users.
  • To be eligible to open this account, one must be up to 18 years.

PayPal Nigeria Transaction Limit

Many people are wondering what PayPal’s transaction limit will look like since they are so keen on proper service delivery and the security of customers’ details. The fact remains that there are two aspects of services from PayPal, and they include:

  1. A transaction between other online payment platform and PayPal account. In this aspect, a one-time payment of up to $4,000 is allowed.
  2. But with a verified PayPal account to another verified PayPal account, there is no limit as per the amount of transaction. But one may be limited to sending the highest amount at $10,000 at a time, but one can send such amount countless times to reach the desired amount.

Note: the above threshold on the amount to send differs depending on the currency involved. If you use an unverified account, there is a limit to the amount of money one can send from a PayPal account.

Cost of Using PayPal To Carry Out Transactions In Nigeria

In Nigeria, Paypal is not just enabled for receiving money, and it is also for sending money. There are charges when you use your credit or debit card to send money to any part of the world. Likewise, there is little to non-charge attributed to sending money through PayPal.

A recipient is entitled to the conversion fee to convert the money into a foreign currency to the local currency. When you are in an urgent situation that requires immediate sending of funds, to facilitate this quick transaction in less than 30 minutes, PayPal charges a 1% fee on the transferred amount but will not exceed $10.

How to Send Money With PayPal in Nigeria

  • Access your PayPal account.
  • Scroll to the send payment located at the top part of the menu.
  • Input the recipient’s details, including the name and the email address.
  • Input the amount you have in mind to send and the desired payment option.
  • Afterward, tap the send button.

Money Can Also Be Transferred Through Invoice

The following steps are required to send funds through the use of invoice:

  • Place a request for an invoice from the recipient.
  • The next step is to wait for the invoice to reflect before going ahead with the above steps of making payments.

The Pre-approved Payment option

One can also make payments through the Pre-approved payment option. This is mainly used in subscription to active payments like Facebook ads, subscriptions to themes, or subscription to applications. The pre-approved payment option gives room for automatic deduction from your account whenever such a subscription is due.

How to Reactivate a Suspended Recurring Subscription or Pre-approved Payment in PayPal

  • Access your wallet account.
  • Scroll to the top side of the menu on the dashboard.
  • Click on payments.
  • Tap the Manage pre-approved payments.
  • Input the name of the customer that you wish to reactivate or even deactivate.
  • Click on the reactivate or deactivate depending on your need.

How to Receive Money Through PayPal in Nigeria

  • To achieve this in Nigeria, open a PayPal business account as individual accounts are banned from receiving money.
  • Next is to set up payment on your website. Carefully go through the process provided on how to set up the website to allow receiving payments from clients.
  • Prepare an invoice with the business account to the sender, who is a client to you now.

How to use PayPal Email to Receive Funds

  • Access your wallet.
  • Tap the request button located by the right corner of the dashboard.
  • Input the sender’s email address and click on next.
  • Input the amount, the currency type, and a note.
  • Tap the request now button.


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