New! How To Receive or Withdraw Online Payments In Uganda

If you are having trouble receiving or withdrawing payments for work done or business you’ve conducted online, this article is for you.

With technological advancement, there seem to be better online payment methods in Uganda compared to 5 years ago.

Receiving online payments back in the day was a hustle.

I remember spending hours, if not days researching and asking friends the best way to receive payments online in Uganda and then be able to withdraw them as well.

In this article, I’ll only share with you the payment options I have used over the years to receive payments online and later be able to withdraw cash at the bank or through mobile money.

Online Payment Methods in Uganda

I’ll dissect this article into 3:

  1. For Individuals. 
  2. For Freelancers working remotely – online or offering services.
  3. For businesses carrying out eCommerce (selling products/services online).

1. Individuals – Receive and withdraw online payments in Uganda

From FinTech apps to payment gateways, there seems to be a lot in the pool of payment services to choose from.

The purpose of this article is not to suggest what services are available on the market, but to recommend trustworthy and reliable services.

For individuals who would like to receive and withdraw payments sent by friends or family. You may consider asking the sender to use any of the options below:

* WorldRemit or Western Union

WorldRemit

Cross-border money transfers are no longer an issue since the birth of Western Union and now WorldRemit. Both the sender and receiver don’t necessarily need to have a bank account. 

Sending charges vary based on the amount and country one is sending to.

Western Union

Payments sent by WorldRemit can be received straight to your MTN or Airtel mobile money account. 

However, both WorldRemit and Western Union offer many pickup locations from a selected number of agents across the country. 

Money sent by WorldRemit or WesternUnion arrives nearly instantly. 

* Wise (formerly TransferWise)

Wise formerly TransferWise

Like WorldRemit, Wise is a game changer when it comes to sending or receiving payments online. 

Signing up is free, and you can download a mobile (Android and iOS) app to use. 

Wise can be used by both individuals (personal account) and businesses. You just have to open an account that corresponds to your needs.

What sets Wise apart from other online payment platforms is that it allows you to create different online (virtual) bank accounts in different currencies. 

They also offer a competitive exchange rate like the one you see on Google.

When you want to receive a payment through Wise, all you have to do is provide your bank details or a number active on mobile money.

You can also receive international payments by creating a free virtual bank account. It could be a USD or Euro bank account which you can create for free with Wise. 

Wise app

Then you can start collecting your payments in foreign currencies which you can later withdraw into your Ugandan bank account within a day or two, excluding weekends.

Receiving payments through Wise is easy, seamless and cheap for both individuals and businesses.

* Xoom by PayPal

Xoom by PayPal

As of writing this article, PayPal users in Uganda CANNOT receive payments on Ugandan PayPal accounts. 

With this therefore, Ugandans can only use their PayPal accounts to make payments on other websites or PayPal accounts.

However, if a person has a PayPal account outside Uganda, they can use Xoom to send you money from their PayPal account.

The Xoom service by PayPal was introduced to enable Ugandans and other nationalities to receive payments from PayPal account holders outside Uganda.

By using Xoom, the person sending you money will choose how they want the payment to be delivered to you. 

You can either pick up the money from selected Xoom agents in Uganda, or it can be deposited into your Ugandan bank account (Equity bank) or Mobile money.

Just like WordRemit, you’re able to make a PayPal withdrawal in Uganda through Xoom to your mobile money via MTN or Airtel money services.

PayPal

With Xoom, all the money sender has to do is:

  • Login into Xoom with their PayPal credentials
  • Enter the amount of money to send and 
  • Select a withdrawal option for the receiver. 

Funds are available almost instantly via cash pick-up or mobile money. Bank transfers can take up to 3 working days though.

Users with Kenyan PayPal accounts and those with a registered MPesa line can make PayPal payments, and receive and withdraw payments using the PayPal-mobile money service, backed by PayPal and Safaricom.

* Use Fintech Apps like Eversend or Chipper cash

As I mentioned at the beginning of this article, technology is accelerating at a very fast speed and it is enabling the move of money not only faster but also safely and cheaply.

Eversend

That is why I have to mention Eversend and Chipper Cash; two head-to-head Fintech apps that Ugandans can use NOW to receive online payments.

Eversend and Chipper Cash are both products of Ugandan tech enthusiasts and entrepreneurs, and they enable you to pay for services like airtime and electricity, give donations or even buy cryptocurrencies.

But the most important of all is you can send and receive money from friends and family or other users who are not signed up on the app.

Funds can be moved between app users, ie Eversend to Eversend, Eversend to mobile money or Eversend to Bank.

Eversend app
Eversend virtual card
Pay bills with Eversend

One can fund their Eversend or Chipper e-wallet from a bank account connected to the App.

Both apps support currencies like the UGX, USD, EURO, KSH and others, and offer highly competitive currency exchange rates.

This means a client can send dollars into your Eversend app which you can later turn into any other currency that’s supported in Eversend like Uganda shillings or Kenya shillings.

Chipper

Lastly, both apps enable you to create a virtual Visa debit card that you can dispose of anytime. This card (not a credit card) can be used for purchasing products and services online using an individual account without sharing personal information like addresses.

Chipper app
Chipper virtual card

The virtual card can be used for online shopping say like on Amazon, Jumia and Facebook with no transaction fee and minimal security risks or cyber threats.

2. Freelancers – Receive and withdraw online payments in Uganda

The services mentioned in the above section may, for the most part, also apply to Freelancers.

Payoneer

However, there are some freelance-centric platforms like Payoneer.

So, if you’re offering Freelancer services (creative writing, software development, music production, graphic/web design) on freelance platforms and marketplaces (Fiverr, eBay, Airbnb), then Payoneer is one of the digital payment methods to consider.

With some similarities to Wise, i.e creating virtual foreign currency bank accounts, Payoneer, delights in helping freelancers get payments from some of the leading marketplaces and global clients, withdraw funds to their local bank account, withdraw funds at ATMs in Uganda using the Payoneer MasterCard, and pay their sub-contractors, all for free within Payoneer.

Signing up for Payoneer is free and takes only minutes, after which you’ll be able to receive and withdraw online payments in Uganda.

3. eCommerce businesses – Receive and withdraw online payments in Uganda

If you’re an online store (website or web app) or a merchant of sorts that sells products or services online, for example, selling clothes on a webshop, selling software or agricultural produce.

You need a way to collect payments from your customers at the checkout; these are called payment gateways. There is a number of payment gateways in Uganda. Here are my top 3.

Flutterwave

A payment gateway company builds technology that enables retailers to process payments on there website or eShop from various card users and payment providers.

There are several payment gateway companies I have used and I would gladly recommend them if you’re planning to set up an online or e-commerce shop in Uganda.

Consider using the services of Flutterwave (rave payments), Pesapal or Direct Pay Online (DPO).

Pesapal

All three companies will enable you to collect payments from clients who prefer to pay with debit and credit (Visa, Mastercard, Verve, American Express, Discover etc), and mobile money services (Airtel, MTN, Tigo Pesa, Vodafone etc).

A new possibility is coming up where some payment gateway companies like Flutterwave and DPO partner with PayPal to enable merchants in Uganda and Africa to collect payments from countries where PayPal is not supported. 

This means that as an eShop owner in Ugandan where PayPal users cannot receive PayPal payments, you could sign up with Fluttewave or DPO and they’ll enable you to collect payments from PayPal users on your store. 

Direct Pay Online

The electronic funds (payment) will be reflected in your business account opened with the payment gateway provider.

To integrate with the mentioned payment gateways is simple. For instance, if you’re using WordPress, they all have a WordPress plugin that you can install and set up in under 5 minutes after signing up.

They also offer well-documented APIs for those interested in a more custom setup/integration.

I made this video months ago and explains how you can use/add these payment gateways on your Website.

All these payment gateway processors require you to have proper documents about you and your business. You can always initiate a payout/withdrawal of the funds collected inside your payment platform dashboard to your personal or business bank account. 

FAQs

Can you receive PayPal payments in Uganda?

Yes and No.

You can receive PayPal payments in Uganda IF the sender makes the transaction through Xoom a Paypal service that will allow them to use their PayPal funds to send you a payment.

This payment doesn’t go to your Ugandan PayPal account but you can withdraw it at a Xoom agent/pick-up point, in your Equity bank account or on MTN and Airtel Mobile money.

Does PayPal work in Uganda?

Yes, PayPal works in Uganda but it’s limited to only sending or making payments to other PayPal accounts or purchasing products & services.
 
Ugandan PayPal account holders are not able to receive payments in their PayPal accounts.

Is Paytm available in Uganda?

NO, Paytm is only available in India. Paytm users should have an active Indian mobile contact and should be residing in India. 

Using Paytm services outside India or using other shortcuts puts you in a vulnerable situation as your account can be marked suspicious or be suspended.

You should avoid using shortcuts when it comes to issues involving moving money and violating set legal measures.

Does Payoneer work in Uganda?

Yes, Payoneer works in Uganda as of 2024.

Payoneer is an online financial platform that functions very similarly to a bank account, allowing you to receive payments, transfer money quickly and easily to and from anywhere in the world, and pay for products and services online. 

Payoneer offers a range of services, including online purchases and payments, instant online money transfers to anywhere in the world, including to bank accounts for free, mass payment service for those who need to send multiple payments to different people in different countries and currencies.

They also provide currency management, allowing you to use multiple currencies simultaneously at convenient exchange rates.

Signing up for a Payoneer account is free and can be done online.

Does Stripe work in Uganda?

Stripe is NOT currently available in Uganda. However, there are ways to open a Stripe account from Uganda.

One way is to incorporate your company in the UK through Incorpuk.
 
Another way is to set up a Stripe account legally without any future issues in Uganda by fulfilling the following requirements:
-A Business Formation in the US (LLC)
-EIN or Tax ID (Employer Identification Number)
-Personal US Physical Address
-A US Phone Number, and a US Bank Account. 

Does Neteller work in Uganda?

NO, Neteller doesn’t open accounts for clients residing in Uganda.

Does WebMoney work in Uganda?

WebMoney Transfer is NOT available in Uganda. Consider WM alternatives such as Paypal, Payoneer or Wise to get similar services.

How to withdraw money from PayPal in Uganda

To withdraw money from PayPal in Uganda, you can use third-party providers.

One is to ask the sender to use Xoom a PayPal service when they send you a payment. 

Then you can be able to receive that payment via Airtel or MTN mobile money, or through Xoom’s agents and pickup point in Uganda or Equity bank with or without an account.

Feel free to contact me at gotechug[at]gmail.com if you have any questions.

How to withdraw money from TikTok in Uganda

To withdraw money from TikTok, you have to link your bank account to TikTok.

To link your bank account to TikTok, follow these steps:
1. Open the TikTok app and log in to your account.
2. Tap on the **Profile** icon at the bottom right corner of the screen.
3. Tap on the three dots at the top right corner of the screen to open the **Settings** menu.
4. Tap on **Balance**.
5. Tap on **Withdraw**.
6. Tap on **Add a new withdrawal method**.
7. Select **Bank Transfer**.
8. Enter your bank account details, including your account number and routing number.
9. Tap on **Submit**.

Conclusion 

I hope this article gives you an idea about online payment methods in Uganda and also offers you the options you’re looking for especially if you’re struggling to find a way to receive or withdraw online payments.

There are many options out there but what I have mentioned are what I have tested, used or tried out myself.

If you have any questions or comments, please don’t hesitate to let me know in the comment box below.

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Hamza
Hamza comes from a design background with over 10years of experience in Web and Media design. He enjoys making web design videos on his YouTube channel GoTechUG. He also writes web design articles on this website. In his free time, Hamza loves riding a bicycle, swimming or going hiking.

22 thoughts on “New! How To Receive or Withdraw Online Payments In Uganda”

  1. Thank you Hamzah for being this detailed and informative. unforgiving is the commission rate and the risk of PayPal closing the account, if they ever doubt the ownership of the account.

    Do you also have an article about services like useremit, worldremit and other services which could send funds directly for a credit/debit card to a user’s mobile money account?

    Thanks once again.

    1. Hi David,
      Thank you for your feedback and contribution. Yes, its true that paypal can do anything incase something seems fishy. I personally don’t advise people to do so however, i shared what others actually do. Its great that people like you get time to share you knowledge with others through big and smaller platforms like commenting on this blog.
      On your question if we have an article about said payment platforms, at the moment we have non thought we hope to share something in future.
      Nonetheless, if you would like to contribute, please don’t hesitate. Just let me know via [email protected] i’ll get back to you ASAP.
      Anyhow, thank you for stopping by and sharing. 🙂
      Cheers,
      Hamza

  2. I like the screen shots.
    One month ago, I was looking for a way of how to fund my paypal, skrill or neteller accounts which are the payment accounts/modes for my forex trading.
    I had to look for such info and I found this helpful.
    Applause for that.

    Twitter: @juliussmasaba
    Facebook: Masaba Julius Julius

    1. Hi Julius,
      First, thank you so much for stopping by to drop your comment. The happiest moment for me is when i read a comment from any of my readers and the best is when actually what they read in someway helped them.
      Second, it was also nice to meet you at the @WordCampKampala and when you shared with me on how this article helped you, i was amazed. Thank you.
      I wish you the best of luck in your endeavors and still waiting for your comments on future posts. 🙂
      Cheers,
      Hamza

  3. Avatar
    Daniel Puleh Ocen

    Hi Hamza,

    I’m Daniel, I read your article titled “4 legit ways to earn money online” it was so informative. Among them i chose drop shipping, I hope to start drop shipping business here in Uganda and have done some substantial research on it so far. therefore I want to know what kind of payment gateway you are using on Shopify store because PayPal business account is almost impossible to withdraw your money in Uganda.

    1. Hi Daniel,
      Nice to read from you. Am glad that you found the article informative. About receiving paypal payments in uganda, kindly read this article https://gotechug.com/how-to-receive-online-payments-in-uganda/ or you may use 2checkout.com. A platform that enables you receive paypal payments through them and sent to your bank account. Remember, you’ll be fully in-charge of your account.
      Otherwise, i wish you all the best.
      Cheers!!
      Hamza

    2. Hello i can help you open a business account that can withdraw funds here in Uganda.
      Contact +256702179687

  4. Avatar
    Ddamulira Hamuza Hakim

    thanx name sake for this article its realy helpful. i would like to open up a paypal account and start an online business. pliz direct me on how to open up a pay pal account.
    thx again.

    1. Hello did you you finally manage to open a PayPal account or Not.
      If not am here i can help you open an account here in Uganda. contact me on
      +256702179687

  5. This is very helpful. If you want to accept epayments offline AND online, what do you recommend? I’m comparing dusupay and DPO. Are there any others that do both?

    1. Hi Kevin,
      I would not recommend any of them as i’ve NOT tested out there platforms and neither have I got feedback from on going clients. However, I know from DPO that you’ll have to pay about $300 just of have access to there platform (signup fee) which i find crazy especially for starters. I think, it would be a good model to charge starters a fee per transaction. Feel free to reachout to them and findout which would work best for you.
      I wish you all the best
      Hamza

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