PayPal’s New Fees (2025): How Kenyan Freelancers Can Avoid High Charges With Geegpay

A few years ago, the internet was hailed as the great equaliser. A place where geography mattered less and talent could move freely. Freelancers in Lagos were designing logos for startups in Berlin. Writers in Accra were editing pitch decks for founders in Toronto. Developers in Nairobi were debugging code for fintech teams in New York. And crucial to making all this flow was a reliable way to get paid. For many, that turned out to be PayPal.

Just like them, you started out using PayPal, too, because, well, it was the default. Clients asked if you had it. Payments came in. It worked.

But fast forward to 2025, and things feel different. You’re earning more, managing recurring clients, and possibly juggling gigs across Upwork, Fiverr, and direct contracts. And every month, the fees pile up. 

At first, it might not have seemed like much. It’s just how the system works, right? But over time, those small differences start to add up. And maybe you’ve noticed that your $500 payment seems to be worth a little less when it finally reaches your account. 

Whatever your thoughts may be, I'm here to tell you that if you’ve been avoiding that email PayPal sent recently — the one about “policy updates” — it’s probably time to open it. Because what’s coming next could eat into your income faster than you think.

Because whether you're a freelancer, a small business owner, or someone who shops online often, PayPal's new fee structure in 2025 is going to affect how you move money and to help you prepare for it, here's a complete breakdown of the changes and what they mean for you.

But before we get into it, did you know that Geegpay recently reduced its fees to help you keep more of what you have worked for? Click here to learn more.

What’s Changing with PayPal in 2025?

PayPal’s 2025 policy update affects nearly every type of transaction. For freelancers in Africa, especially those in Kenya, these changes could quietly reduce how much you actually take home. Here’s what to expect:

1. International Transaction Fees

If you receive payments from clients abroad, PayPal now takes 4.90% of the total amount, plus a fixed fee based on the currency. For example, if a client pays $1,000, 4.90% of that is $49. Add the $0.30 fixed fee, and you’re left with $950.70 before any conversion or withdrawal happens.

2. Domestic Transaction Fees

If you're transacting within your region, fees still apply. PayPal Checkout now comes at 3.49% plus a fixed fee. QR code payments cost between 2.29% and 2.99%, depending on the amount, and card transfers — even for personal use — attract a 2.90% charge.

These percentages might seem small at first, but for freelancers working with multiple clients or regular payments, they add up quickly.

3. Instant Transfers Are Still Fast But More Expensive

PayPal’s instant transfer feature remains a go-to for many freelancers who need quick access to their funds. But the price for speed is going up. The new instant transfer fee sits at 1.75% per transaction, capped at $25. On paper, that doesn’t sound terrible. But if you’re transferring $500, that’s nearly $9 gone instantly. Even smaller transfers aren’t spared. The minimum instant transfer fee is now $0.25, which doesn’t sound like much until it becomes part of your weekly routine. 

4. Withdrawal Fees for Smaller Transfers

For freelancers withdrawing smaller amounts more frequently, understanding PayPal’s withdrawal fees can make a big difference in how much you actually take home. The fees can vary based on both the country and the size of the transaction, which means it’s important to know how these charges add up when managing smaller transfers.

For instance, in Kenya, PayPal withdrawals are typically processed through M-Pesa or Equity Bank. For withdrawals under KES 20,000, there’s a flat fee of KES 105, regardless of the exact amount. While this might not seem like much at first glance, it can become proportionally higher when withdrawing smaller amounts. Larger withdrawals (over KES 20,000) are more cost-effective, as there is no withdrawal fee

5. U.S. Bank Withdrawal Fee

As of 2025, PayPal does not charge a standard fee for withdrawing funds to a U.S. bank account when no currency conversion is involved. However, if currency conversion is required, PayPal applies a fee ranging from 3% to 4% above the prevailing exchange rate.​ Additionally, for instant withdrawals to a U.S. bank account, PayPal charges a fee of 1.75% of the total amount transferred.

It's important to note that these fees are subject to change, and it's advisable to review PayPal's official fee schedule or contact their support for the most current information

6. Dispute Fees

Starting in May 2025, PayPal has introduced a Merchant Dispute Fee to cover the costs associated with managing disputes. The fee structure is as follows:​

• Standard Dispute Fee: A flat fee of $8 applies to each dispute.​
• High-Volume Dispute Fee: If your dispute rate is 1.5% or more and you had more than 100 sales transactions in the previous three full months, a higher fee of $16 per dispute applies. ​

It's also important to note that these fees are charged regardless of the dispute's outcome. Even if the dispute is resolved in your favour, the fee still applies. This means that if a client disputes a payment, you could incur a fee even if the resolution is favourable.

By now, it’s obvious that these changes could significantly increase your costs, especially if you’re dealing with frequent international payments.

So, what's the solution?

With PayPal’s new policies, it’s a good time to look at alternatives. This is where Geegpay, a platform designed with African freelancers, creators, and remote workers in mind, comes in.

Here’s why Geegpay might be the better option for you:

• Affordable Transactions: No hidden fees here. With Geegpay, you pay a 0.8% fee for your USD deposits. No matter how much you receive, your fees won’t exceed $15. You also pay a minimum of $1.5 for ACH & Wire USD deposits and $10 for SWIFT. Want to learn more about our fees? Click here 

• Multi-Currency Accounts: Set up instant USD, EUR, and GBP accounts to send, receive, and manage payments across currencies, all in one place.

• Virtual Dollar Card: Geegpay gives you a virtual dollar card for shopping online and handling subscriptions, so you’re always covered. Whether it’s subscriptions to tools like Notion, Figma, or ChatGPT, or accessing learning platforms like Udemy and Skillshare, your card works seamlessly. It can also be used for ads on platforms like Meta, Google, and TikTok, or web services like GoDaddy, Hostinger, and Namecheap. Even for everyday expenses like Spotify, Apple Music, and your cloud storage, or streaming services like YouTube, Netflix, and Prime, this card has got you covered. Plus, you can add it to Apple or Google Pay for convenient, contactless payments when you travel or shop abroad.

• Seamless Invoicing: Send customizable invoices to clients and automate the process to make payments faster and easier.

• Bill payments: Geegpay makes managing your bills effortless with its Bill Payments feature. You can pay for airtime, internet, electricity, and cable TV directly from your Geegpay wallet, all in one place, with just a few taps.

• Competitive Rates: Transfer money to over 50 countries at rates that make sense for your business.

For Kenyan freelancers facing PayPal’s increased fees, Geegpay offers a much more cost-effective, user-friendly option.

🔗ICYMI, here’s why you should consider moving from Wise to Geegpay

Ready to Make the Switch?

With PayPal’s new fees on the way, it’s the perfect time to explore alternatives like Geegpay. Follow these easy steps to set up your Geegpay account.
Step 1: Click here to download the Geegpay app or easily get it from your IOS or Google Play Store.

Step 2: Click on "Sign up”.

Step 3: Create an account using a working mobile number and click “Next”.

Step 4: Input the OTP that was sent to the number.

Step 5: Once the number has been verified, enter your email address to continue.

Step 6: Enter the six-digit code sent to your email address and click verify.

Step 7: Set up your personal profile, create a very strong password and click submit.

And just like that, you are set up to experience Geegpay, a payment platform that’s designed for African freelancers, remote workers, and businesses.

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