M pesa tariffs pdf files

From next week, safaricom will implement a 50% tariff reduction for all lipa na m pesa buy goods merchant fees. Community level economic effects of mpesa in kenya. Mpesa as a payments and money transfer platform was developed jointly by safaricom, a telco company, and the commercial bank of africa. The impact of mpesa in kenya, nber working paper no. The results were presented in a table format appendix 2.

Mpesa was originally introduced in kenya as an alternative way for the unbanked. By using the app you get a richer experience on all transaction types be it sending money to loved ones. Usage and impact from mpesa august 2009 brief despite growing agreement on the potential of technology to expand access to. Safaricom change in mpesa tariffs, august 2014 mpesa transaction value old fee new fee as of august 2014 % change in fee 1049 3 167 50100 5 340 101500. Mco withdrawalto m withdrawa opcash payments pesa m pesa l from to 10 49 free na free na na 50 free50 50 free na 30 50 100 101 500 free 50 free 30 30 50. Panchayat extension to scheduled areas act, 1996 pesa act, 1996. Documents in econstor may be saved and copied for your. Apr, 2016 how does the m pesa service work and what are the risks. Nov 22, 2015 mpesa is a mobile money transfer service that launched in kenya in 2007. In essence, mpesa is a persontoperson p2p money transfer system that allows individuals to make payments and send remittances. Red clients will be given priority when they call the service desk for assistance. Safaricom announces new mpesa tariffs based on excise duty.

Browse here for more information regarding m pesa statistics, history of m pesa, access trust deed forms and next of kin claim procedure. Safaricom had lowered the minimum size of an mpesa transaction and had lowered the tariffs on the smallest transaction tiers. The government proposed a two per cent increase on the excise duty charged on service providers. The impact of mpesa in kenya isaac mbiti and david n. Within the first eight months after its launch in march 2007, mpesa announced a subscription base of 900,000 users and 1,200 agents operating nationwide. Feb 21, 2017 the m pesa mobile payment system was launched in kenya in 2007. Im sure that mpesa users throughout the country will roundly welcome this news.

The core business proposition of m pesa1 there is a sense of discomfort among the financial institutions about the success of mpesa and the. Safaricom cuts lipa na mpesa tariffs by half, announces m. A good example of such a service is safaricoms m pesa, which was introduced in march 2007, in kenya. Kenyas disruptive mobile money innovation balloonview press, 2012. M pesa was originally introduced in kenya as an alternative way for the unbanked. Mpesa was launched 10 years ago in kenya and it now has over 24 million customers, 54,000 active merchants and over 114,000 mpesa agent outlets. The economics of mpesa william jack and tavneet suri nber working paper no.

Its operated by vodafone for safaricomm and vodacomm, the largest mobile operators in kenya and tanzania. Kenyans will now pay a 12 per cent excise duty on mobile money transactions, up from 10 per cent. Pdf in recent times, inexpensive mobile phone technology has become widely. Our study captured community effects that occurred via direct and indirect economic effects realized by the users of m pesa and that accrued to nonusers through the presence of m pesa and users of m pesa. Kenya is the most mpesa adopting country in the world, but tanzania is catching up with 55 percent of its consumers using and an increasingly large part of the mobile money tally vodafone is. Prior to mpesa, mobile phone customers had engaged in trading prepaid airtime. Mcoopcash limits and tariffs cooperative bank of kenya. How does mobile microfinancing service m pesa allow users to make transactions without a bank account. The impact of pure mobile microfinancing on the poor. We are here to assist you 247 with our red premium service desk dial 082111. Jan 01, 2020 below we have looked into the type of mpesa paybill tariffs available to business opting to have lipa na mpesa account. The transaction cost is therefore higher when sending and. Mpesa is a mobile money transfer service that launched in kenya in 2007.

M pesa charges will depend on the amount you are sending or withdrawing. New mpesa charges, fees and tariffs starting july 2018. The mpesa mobile payment system was launched in kenya in 2007. When you transact on m pesa, you earn bonga points. Whilst every effort has been made in building these calculators, we are not to be held liable for any special, incidental, indirect or consequential damages or monetary losses of any kind arising out of or in connection with the use of the tools and information derived from the web site. The mpesa staff were able to garner insights and understanding that may contribute to framing policies and practice for mobile money services. Mpesa rates, mpesa tariffs, mpesa withdrawal charges, m. The new charges will not apply to those merchants using lipa na mpesa paybill, gaming merchant tariffs, and lipa na mpesa petrol station tariffs. M pesa is an initiative between mobile phone giant vodafone and kenyas safaricom. M pesa deposit free free eft transfer 150 100 airtime purchase tiered kes. To m pesa m pesa withdrawal withdrawal payments from to 10 49 35 na free na na 50 35 50 50 free 30 na 50 100 101 500 35 50 free 30 30 50 35501 60 free 40 30 50 1,000 351,001 60 free 40 30 50 1,500 1,501 2,500 35 60 free 40 30 50 35 70 free 50 30 50 2,501 3,500. As many on twitter noted and peter gakuremwangi noted on, this. Ignacio mas and dan radcliffepesa is a smallvalue electronic payment and storeofvalue system in k enya accessible from.

Mpesa charges depend on the amount you are sending or withdrawing. Scom has today announced a number of initiatives that seek to further increase the convenience of m pesa as it continues to extend the gains of mobile money ten years after its launch in kenya. How mobile money has changed lives in kenya page 3 of 3 using a bank for the first time banks, cooperatives, and nonbank financial service providers have quickly connected to m pesa in order to allow existing customers to access their accounts more easily, though to date there have been. We examine how mpesa is used as well as its economic. Lipa kwa mpesa is vodacoms merchant payments solution to digitize payments in the tanzania retail ecosystem and enable merchants and retailers collect payments seamlessly while helping customers to avoid the risks and burdens of carrying cash. This is a scary prospect, in light of the fact that, on average, voice still. You cannot deposit money directly into another mpesa customers account at an agent outlet. How does the mpesa service work and what are the risks. Mpesa services spread to 19 african countries daily nation. Mpesa the largest and most innovative mobile financial service in tanzania has enriched its transaction experience by launching its mpesa app. This is the second part of the guest post by dr ndunge kiiti of houghton college, new york and the gsma mwomen programme on the benefits and challenges of using mobile money to reduce poverty for. The app provides a truly transformative customer experience.

Today, as it faces new challenges, it has 30 million users in 10 countries and three continents. Financial services for the underbanked contributed by. Chapte r 20 mobile payments go viral mpesa in kenya. Mukesh sadana, george mugweru, joyce murithi, david cracknell and graham a. To initiate mpesa self reversal, send the transaction con. The contribution of m pesa to deepening financial inclusion for the poorest socioeconomic groups in kenya is significant. M pesa has in the past been touted as the most successful of these systems, and the first to operate on a large scale.

A mobile banking service that allows users to store and transfer money through their mobile phones. Click above on tittle for a better view safaricom has revised its m pesa charges as follows effective 21st august 2014. This study is intended to help fill in that gap, since sustainability of m pesa may depend on achieving communitywide impact. Recent mobile money reports in kenya indicate that over 50% of the adult population. The economics of m pesa william jack and tavneet suri nber working paper no. A good example of such a service is safaricoms mpesa, which was introduced in march 2007, in kenya. This increase forced safaricom to adjust upwards the amount they charge you to transact mpesa. What are the requirements for registering on m pesa as a user. Financial services for the underbanked contributed.

Pdf an analysis of mpesa use in international transactions. Do the mpesa rails contribute to financial inclusion. To register or transact at any mpesa agent outlet, you will be required to produce either of the following original identification documents. This mpesa paybill tarrif normally splits mpesa paybill charges between the customer and business. A good example of such a service is safaricoms mpesa, which was. Mpesa, which is available in nine african countries, will also help mtn users access the world market through its 250,000 agents thereby enabling realtime transactions from sender to. The story so far tamara cook and claudia mckay access to finance forum reports by cgap and its partners no. Safaricom to reduce lipa na mpesa charges for merchants in. The mpesa tariffs include withdrawal fees, and are differentiated. You will pay more for amounts above kes 1,500 and less for amounts less than kes 1,500 new charges for sendingtransferring cash minimum ksh. This service is free and you will only pay for the airtime purchased. O16,o33,o55 abstract mobile money is a tool that allows individuals to make financial transactions using cell phone technology.

A national representative study done by financial sector deepening fsd in 2009 revealed that purchase of airtime was the most commonly used service of m pesa besides sending and receiving money fsd, 2009. To register or transact at any m pesa agent outlet. Mpesa catches on technology and innovation often catch on ahead of regulation. Safaricom implemented the new mpesa rates after the kenyan government proposed a 2% increase on the excise duty charged on service providers. M pesa is a unique innovation that is rapidly evolving laws must be flexible in order to accommodate new changes and not confine development of new products.

Practitioners insight mpesa a success story of digital. The transaction cost is therefore higher when sending and withdrawing money through mpesa. While mpesa has been touted as a savings tool for the poor, there is little evidence to suggest that the service is widely used to store value as savings 4 isaac mbiti and david m. The core business proposition of m pesa1 there is a sense of discomfort among the financial institutions about the success of m pesa and the. You can use your m pesa menu to buy airtime for your phone, or for someone else. You can also use your mpesa to buy airtime for your phone, or for someone else. Browse here for more information regarding mpesa statistics, history of mpesa, access trust deed forms and next of kin claim procedure. Due to increased taxes in the mobile money industry, there are new mpesa charges, fees and also tariffs starting july 2018. Do the m pesa rails contribute to financial inclusion. M pesa m for mobile, pesa is swahili for money is a mobile phonebased money transfer, financing and microfinancing service, launched in 2007 by vodafone for safaricom and vodacom, the largest mobile network operators in kenya and tanzania. M pesa and records the quantity of emoney owned by a customer at a given time. Safaricom has adjusted mpesa tariffs on the basis of finance bill, 2018 and the provisional collection of taxes and duties act.