Safaricom cuts Lipa na M-Pesa tariff by 50% to increase Billable Limit to Ksh. 200
Safaricom’s CEO Bob Collymore has announced that the company is increasing the Lipa na M-Pesa billable limit to Ksh. 200.
Dubbed “M-Pesa kadogo”, the Buy Goods payment option will now allow customers to transact for free for any amounts below Ksh. 200 up from Ksh. 100.
Speaking during the FT Africa Payments Innovation Summit held in Nairobi, Safaricom boss made the announcement and added that the company hopes that the Lipa na M-Pesa payment platform will now attract more players. He specified that the new limit is expected to attract small and medium enterprises while at the same time increase the competitiveness of the service in the market.
What this means is that you can purchase goods worth Ksh. 200 and below and your merchant will not be required to share a section of that money with Safaricom. This is good news for merchants who use the Lipa na M-Pesa payment option.
Merchants will also be happy to know that Safaricom has slashed the merchant tariffs by 50%. The telecoms giant says that will ensure that SMEs and small businesses such as bodaboda, kiosks various vendors, and eateries are accommodated. Previously, the merchant tariff was 1% of the total transaction amount but this has been slashed to 0.5%.
In addition, merchants will now pay Ksh. 200 for transactions of above Ksh. 40,000.
These developments come after Safaricom made changes to its mySafaricom app to include the M-Pesa menu. This service is expected to make it easy for over 20 million M-Pesa customers to transact via their handsets. This means convenient completion of M-Pesa transaction.
Safaricom deserves a pat on the back for the strides it has made in enhancing M-Pesa services. The latter remains one of the best mobile money services in Kenya. Since its introduction, M-Pesa has undergone significant changes that have enhanced its effectiveness.
One of the best innovations by the company has to be the Hakikisha feature which allows customers to confirm the recipient before sending money. This is definitely a savior since many people had been losing money by keying in the wrong phone numbers. This is no longer a reality for M-Pesa customers.
This feature has also been extended when using the Lipa na M-Pesa platform as customers can confirm the names of agents or businesses before making their Lipa na M-Pesa transaction.
Safaricom has been dominating the mobile payment system since it introduced M-Pesa. While Airtel Money and Orange Money have been in the business for quite some time now, their presence is yet to be felt several years later. Chances of overtaking Safaricom are slim.
M-Pesa continues to dominate this industry and its heavy presence has attracted critics who have termed it as “too big”. In the past four months, Safaricom has been fighting the suggestion to separate it from M-Pesa.
Finally, before you run to your nearest store, note that the new tariffs will be effective starting April 1st.