Before entering the process of creating an account, we should know the importance of PayPal and how to create a PayPal account in UAE. We know that the world is becoming digital nowadays, whether it comes to businesses, shopping or banking. In that case, a trusted platform for secure transactions is needed.
What is PayPal?
One of the highly trusted online transaction platforms is PayPal. When it comes to secure internet-based payments, funds transfer, and online transactions for shopping and shipping, PayPal is a highly rated and widely used platform globally. It is an essential tool for customers and businesses alike.
Other than that, it is convenient to transfer and receive money from your friends and family as it facilitates cross-border transactions and enhances financial flexibility.
Is PayPal available in UAE?
Paypal services are available in almost 200 countries, making it a global leader in online payments. However, the specific number of countries raises a concern for people residing in Dubai: “Is PayPal available in UAE?” The answer is YES; PayPal works in the United Arab Emirates.
The residents of the UAE can use PayPal services in the same way they can be used anywhere else. In fact, PayPal UAE has established its first MENA (Middle East and North Africa) office in Dubai to expand its regional presence.
This significant step is a strategic move as Dubai is known for its dynamic business environment and global financial hub. With already more than one million customers and a 5% market in such a vast market of Dubai, PayPal aims to reach a larger number of merchants in the coming years.
How to Create PayPal Account in UAE?
PayPal is easy to use; all you need to do is create an account. For setting up PayPal in UAE you just need to follow simple steps.
- Go to the official PayPal UAE website.
- Click on signup and select the type of account you want to make either a personal or business account.
- Fill in the required personal information, such as your name, phone number, and address.
- Secure your account with a password.
- Link your Bank Account or credit card to your account.
- Verify your account by clicking on the link sent by PayPal via email.
How To Link a Bank Account or Credit Card – Create a PayPal Account in UAE
Here is a step-by-step guide to make it easier for you to link your accounts to PayPal.
- Access the wallet section in the app menu tab and select Banks and Cards.
- Choose whether you want to “Link a bank account” or “Link a card”.
- To link your bank account, enter your account number, IBAN or any required credentials.
- To link a credit card, enter your card number, expiration date, and CVV code.
- Save the details and verify.
PayPal Account Verification – Create a PayPal Account in UAE
Verification of your PayPal account is necessary for smooth and secure transactions. It is the process of confirming your identification, details and your financial details. Key aspects of verification in UAE include:
- Email or Phone Number Verification: PayPal sends a verification code to the phone number or a confirmation link via email to verify your ownership.
- Payment method verification: If you choose a card as a payment method, PayPal gives a unique code in the transaction description and charges a small amount to the card. You have to enter that code into your PayPal account to confirm its validity.
- On the other hand, if you choose a bank account for your payments, you just need to provide bank account details or an IBAN to confirm a small deposit or charge.
- KYC requirements to comply with UAE regulations, depending on your account usage, PayPal UAE might require additional information for security purposes, such as your Emirates ID, passport, or utility bills.
Once verification is complete, it increases the withdrawal limits, enhances security and seamless sending and receiving of payments to ensure credibility and build trust.
Benefits of PayPal – Create a PayPal Account in UAE
Using PayPal is beneficial for customers as well as businesses in several ways.
- PayPal helps you with effortless withdrawals and transactions with enhanced protection and also without your financial details being compromised.
- It has an easy-to-use interface; someone without advanced knowledge of technology can also use it by following simple instructions.
- PayPal deals with multiple currencies, which can be very beneficial in a country like UAE, which is a global business hub where people conduct cross-border trades, making it easier to engage in international transactions.
PayPal’s Currency Conversion Policy – Createa PayPal Account in UAE
Local currency is automatically changed into international currency in case of international transactions. However, you need to stay aware of the conversion rate and markup. PayPal can charge you more than you expected when you purchase something or send money to another country.
Every type of transaction has a different fee incurred to it. For business accounts, transaction fees can reach up to 5% other than the currency exchange fee.
How to Send and Receive Money in PayPal?
You must be aware of exchange rates and fees during money transfers to ensure seamless transactions. If you want to save money on currency exchanges, you can select other international transfer service providers like AirWallex, which is a cheaper alternative.
Paypal Account Fee in the UAE
Paypal imposes fees according to the nature of your transaction. Additionally, currency conversion or receiving payments from international sources may require additional fees.
| Traders Type | Domestic % of the Amount Fee | Fixed Fee |
| Paypal checkout | 3.49% | The amount of the fixed fee depends on the country’s currency in which the payment is received. |
| Invoicing | 3.49% | The amount of the fixed fee varies depending on the country’s currency in which the amount is received. |
| Paypal Guest Checkout | 3.49% | The fee amount depends on the country’s currency in which it is received |
| Paypal guest checkout – American Express payments | 3.50% | No fixed amount of fee |
| QR code transactions – USD 10.00 and below | 2.40% | The amount varies based on the amount received from the government. |
| QR code transactions – USD 10.00 and above | 1.90% | The fixed fee amount changes based on the currency received from the country. |
| QR code transactions through a third-party vendor | 2.29% | A fixed fee of USD 0.09 |
| Pay with Venmo | 3.49% | The amount varies based on the currency received from the country. |
| Standard debit and credit card | 2.99% | The amount is contingent upon the money received from the government. |
| Send or receive money for goods & Services
payments |
2.89% | The fixed amount depends on the amount received from the government |
| All other commercial transactions – American Express payments | 3.49% | No fixed amount of fee |
| All other commercial transactions | 3.49% | The fixed fee varies depending on the funds received from the country. |
How to Withdraw Funds from the PayPal App?
You can withdraw your funds by following these easy steps,
- Sign in to the “PayPal app”
- Go to “PayPal Balance”
- Select “Withdraw Funds.”
- Follow the given instructions to complete the withdrawal process.
Transfer of Funds to Your Bank Account
You can transfer funds by following the steps below,
- Log in to your PayPal wallet via the app or website
- Go to “ Transfer Funds.”
- Then select“ Transfer to Bank Account.”
- Follow the instructions to complete the transfer.
Make sure to complete your verification steps, as you’ll need verification every time you make a transaction from PayPal.
Is PayPal Safe to Use in the UAE?
PayPal is known for its security features and user-friendly interface; however, users must be aware of its transaction fees and withdrawal limits. The users must read the terms and conditions and the fee structure very carefully.
PayPal offers a Purchase Protection Program for additional protection from fraud. In case of any fraud, qualifying transactions may be fully covered, including shipping costs and purchase price.
Despite PayPal’s security measures, users must stay vigilant for potential scams and fraud. To avoid fraud, avoid clicking on any suspicious or unknown links, report any suspicious emails related to PayPal, and install antivirus software. And last but not least, remember that PayPal accounts are tied to specific countries, so you must open your account in the country you move to. Additionally, withdraw your funds, resolving issues before closing your old PayPal account.
Minimizing Transaction Fees with PayPal
To reduce your PayPal international transaction fee, make transactions directly from your account to avoid extra fees from your debit or credit card. Also, if you make larger payments, you can reduce the costs, as the minimum fee is 4.99% if you transfer directly from your PayPal account.
Additionally, you can deduct your PayPal and other processing fees from your taxable income at the end of the year, helping you save taxes. But as your business grows, you need to explore additional payment options.
Pros and Cons of a PayPal Account in the UAE
| Pros | Cons |
| User-friendly for cash transfers | Charges on business transactions |
| Secure platform with encrypted payment details | Transfer of funds mostly takes 2 to 3 business days |
| Supports transactions in multiple currencies, making it suitable for international transactions | Difficulty in contacting PayPal’s customer support |
| Prevention of scams and fraud, and provision of refunds | Suspension of accounts without any solution |
Are there extra charges with PayPal?
Apart from the standard transaction fee, there is a 4.5% currency conversion fee or revealed percentage when you make transactions. PayPal adds a cost to the exchange rate by increasing the wholesale rate of the bank. When you transfer money from PayPal to a personal bank account, it automatically changes it to the recipient’s currency.
These transaction charges can affect the total cost of your international transactions. There are certain fee calculators that you can use for PayPal fee calculation.
Conclusion
PayPal has made it easier for businesses as well as regular users to transfer money online without compromising their financial credentials. The account can be set up in simple steps and is very easy to use for everyone. You can also exchange money internationally, making global businesses and trades easier and more convenient at the cost of a small fee.
If you have any other queries related to business or banking, you can contact our team of experts at Al Riyady. We provide high-rated Corporate and business services in the UAE.
