How to use a PayPal account in Saudi Arabia?

There has been an increasing trend of people using PayPal accounts to make payments in Saudi Arabia to different online merchants. However, PayPal is not very famous for receiving payments as in KSA.

What is PayPal?

PayPal is a safe way of not only making online payments but also receiving money. Both sellers and customers can use PayPal services. Payments can be exchanged by making an account at PayPal. Unfortunately, Paypal is not used widely in KSA, unlike European countries where all websites accept Paypal payments. 

Opening a PayPal account

You can open either a personal or business account with PayPal in Saudi Arabia through this link. Make sure to use your correct details as they might need your passport and driving license later to verify your account.

Link a Card

After creating the PayPal account, click on Wallets and then Link a Card. Paypal will charge you $1 for verification. You would be required to enter the code shown in the bank statement/SMS against this transaction. Once the code is entered, your account will be successfully verified.

PayPal to PayPal transfer

You can transfer money from your PayPal account to another PayPal account very easily. Just click on the “Transfer Funds” button, enter the PayPal account details and you are all set to make the payment.

If you have a sufficient PayPal balance, the amount would be deducted from there. Otherwise, your Saudi credit or debit card linked with the account in the previous step would be charged.

Receiving money on PayPal

Many freelancers use PayPal to receive money in Saudi Arabia. In order to receive money, you can use either of the following 3 options;

• Create your PayPal link.
• Tell the other party your email address registered with PayPal. 
• Use the Request Money option.

Where to use PayPal balance?

You can use your PayPal balance in making payments to the following online shopping websites in KSA;

• Xcite – There is a range of electronic products available here.
• Centre Point – Clothing and fashion products.
• Home Centre – One of the best places to buy high-quality furniture.
• Splash – Indian fashion brand with a significant presence in the Gulf.
• Max Fashion – A lower-end clothing brand.
• Baby Shop – Highly affordable toys for the children
• Shoe Mart.
• LifeStyle.
• Agoda. – Hotel booking.

Withdrawing money from PayPal

After receiving money, you would be thinking about how to withdraw it to your bank account in Saudi Arabia. There are two options available here;

1- You can link a bank account using the routing number and account number. When I checked the routing number from SNB Al Ahli and Al Rajhi Bank bank to link with PayPal, they are not aware of it. Therefore, you cannot withdraw Paypal funds into a bank account in Saudi Arabia.

2- The second option is withdrawing funds to a credit card but again many banks do not allow it. As per my information, the credit card of Emirates NBD bank and VISA card of STCPay in Saudi Arabia allows withdrawal from PayPal.