Safaricom, a Kenyan telecommunication company, recently announced that users of its mobile money transfer service M-Pesa will now be able to send amounts as low as KES 10 (USD 0.12), down from the previous minimum of KES 50 (USD 0.61). The charge for a transaction of KES 10 is KES 3 (USD 0.04).
The company has also changed its pricing for other transaction sizes, with 11 tariff bands in effect. The transaction fee for the band between KES 101 (USD 1) and KES 500 (USD 6) was lowered by 16.6 percent to KES 25 (USD 0.30). Safaricom will increase fees charged on larger transaction amounts, for example:
– sending KES 501 (USD 6) to KES 5,000 (USD 60) costs KES 30 (USD 0.36)
– transactions of KES 20,001 (USD 242) to KES 45,000 (USD 545) will cost KES 75 (USD 0.91)
– customers conducting transactions between KES 45,001 (USD 545) to KES 70,000 (USD 848) will be charged KES 100 (USD 1)
Previously, all transfers up to KES 35,000 (USD 424) levied a charge of KES 30 (USD 0.36) and transactions from KES 35,001 (USD 424) to KES 70,000 (USD 848) held a KES 60 (USD 0.73) fee. Charges for withdrawals have also been raised and will range between KES 45 (USD 0.55) and KES 300 (USD 3.64).
M-Pesa, which was developed by Britain’s Vodafone Group and launched in 2007, has approximately 15.2 million clients and 35,000 agent outlets across the country.
By Charlotte Newman, Research Associate
About M-Pesa
M-Pesa is a Kenyan mobile money service. The “M” stands for “mobile,” and “pesa” means “cash” in Swahili. Launched in 2007 by Safaricom Limited, a Kenya-based cellphone service provider, M-Pesa was developed by Vodafone Group Private Limited Corporation, a British multinational mobile network operator. As of 2011, M-Pesa reports having 15.2 million clients and 35,000 agent outlets across the country.
Sources and Additional Resources:
All Africa: “Kenya: M-PESA Can Now Send as Low as Sh10,” http://allafrica.com/stories/201203020418.html
MicroCapital.org story, February 7, 2012, “MICROCAPITAL BRIEF: 84% of New Cellphone Users in Kenya Signing Up for Mobile Money Transfer,” https://www.microcapital.org/microcapital-brief-84-of-new-cellphone-users-in-kenya-signing-up-for-mobile-money-transfer/#more-16820
MicroCapital.org story, August 23, 2011, “MICROCAPITAL BRIEF: Kenya’s M-Pesa Mobile Money Service Reports Revenue Growth of 56%,” https://www.microcapital.org/microcapital-brief-kenya%E2%80%99s-m-pesa-mobile-money-service-reports-revenue-growth-of-56/
MicroCapital Universe Profile: M-Pesa
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=M-Pesa
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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