If you’ve ever sent cash, paid bills, or even shopped online with your phone in Kenya or some other African country,  chances are you’ve used M-Pesa. As of December 2024, there were 34 million M-PESA users in Kenya and over 60 million across Africa, making it one of Africa’s most popular payment networks.

This mobile payment system has become a lifeline for millions; beyond Kenya, it is fast, secure, and ridiculously convenient. 

With its convenience and ease of use, M-Pesa is now commonly used to buy cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), USDT, and USDC on peer-to-peer (P2P) marketplaces like Paxful.

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Key takeaways:

• M-Pesa has transformed financial transactions in Kenya and across Africa, integrating many unbanked individuals into the formal financial system.
• Buying crypto with M-Pesa is straightforward, making it accessible for beginners and experienced users.
• To buy crypto on Paxful P2P, you must create an account, pass KYC, and select a seller accepting Mpesa as a payment option.

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What is M-Pesa?

M-Pesa (“M” for mobile and “PESA” for money in Swahili) is a mobile-based money transfer and financial service launched by Safaricom in Kenya in 2007.  Registered users: send, receive, and store money using mobile phones.

Today, it’s a financial lifeline for millions, enabling quick transactions, bill payments, and now—buying crypto.

Why use M-Pesa to buy crypto?

M-Pesa simplifies purchasing cryptocurrencies, eliminating the need for a bank account. Here’s why it stands out:

• Widely available: M-Pesa is deeply integrated into daily financial activities in Kenya and many African countries.
• Fast transactions: No waiting- transactions are instant.
• Secure payments: M-Pesa’s built-in security features provide additional security
• No Bank account is required: All you need is a registered mobile phone and an active M-Pesa account.

How to buy crypto with M-Pesa on Paxful

Ready to dive into the world of crypto using M-Pesa? Here’s your step-by-step guide to starting Paxful and buying crypto with M-Pesa.

Step 1: Create a Paxful account

• Create a Paxful account using your phone, the web, or our app (available on Google Play or iOS).
• Next, create a strong password and accept the terms and conditions.
• Verify your email or phone number to activate your account.
• Finally, complete the KYC process, enabling you to access the marketplace.

💡Already on Paxful? Log In to continue.

Step 2: Find a seller accepting M-Pesa

• Navigate to Paxful’s homepage and click Buy Bitcoin (or any other crypto).

• Use the filters to select M-Pesa as the preferred payment method.

• Browse the seller’s list: You will see promoted offers & other offers. Before setting on a seller, check their rates, trade terms, and user feedback.

Step 3: Initiate the trade

• Click on a seller’s offer that matches your needs. 
• Review their offer terms and conditions carefully. Some traders also set requirements before accepting the trade.  For example, some sellers might require you to have completed a given number of trades, etc.
• Enter the amount of crypto you want to buy.
• Click Buy Now and use the chat feature to communicate with the seller.

Step 4: Make the payment

• The seller will provide their M-Pesa payment details.
• Send the payment using M-Pesa. The Mpesa system will generate a receipt containing the following information: the amount set, the recipient’s name, the transaction number, the transaction cost, and the time and date of the transaction. This is sent to both parties.
• Mark the trade as Paid once the transaction is complete.

‼️Marking the trade as paid before sending the payment can damage your reputation and get you blocked.

Step 5: Receive your crypto and leave feedback

• The seller will confirm and then verify your payment. Once verified, Bitcoin will be sent to your Paxful account.
• Your transaction is now complete! The new Crypto balance will be reflected in your account. You will receive an email from Paxful with the translation details.
• Finally,  leave feedback based on your experience. This can be positive or negative. The seller will also leave complimentary feedback.

Tips for using M-Pesa safely for crypto purchases

• Avoid trades with unusually low rates: They might be scams. When it comes to trading crypto, safety should always be your top priority. That jaw-droppingly low rate? It’s tempting, sure, but it might as well come with a flashing red warning sign. Scammers often lure buyers with unrealistically low prices, only to vanish with your cash—or worse, use your info for shady purposes.
• Choose sellers with high ratings: Think of seller ratings and reviews as your crypto-trading compass. High ratings? Positive feedback? That’s your cue to proceed with confidence.  A well-reviewed seller has likely built a solid trustworthiness and reliability track record.
• Leverage Paxful’s built-in security tools: If you’re trading on Paxful, use every security tool we offer—it’s there for a reason. The escrow service is your best friend here. Here’s how it works:
  • Paxful’s escrow holds the crypto in a neutral space when a trade starts. The goal is to protect both parties. The seller can’t touch the crypto until you’ve confirmed payment. Likewise, you can’t access it until the seller confirms they’ve been paid.
• Never trade off-platform: Trading off-platform is like leaping without a safety net. Sure, the seller might promise a better deal, but here’s the reality: there is no escrow, dispute resolution, or protection. Off-platform deals leave you vulnerable. If the seller ghosts you after taking your payment or the buyer claims they paid but didn’t, you’re left in the lurch. There’s no trusted third party to step in and set things straight.