Lately M-Pesa got the biggest hype. It has expanded its popularity around the world, and all for good reasons.
Talking about solving a real situation, people around the world have been trying to find ways to easily and efficiently send money to distant people in a matter of seconds for a long time. Although there are other money transfer systems, the most common is the Western Union money transfer, or interbank transfer.
All of these systems work very well, but one of the major setbacks has always been to complete these transfers. This is where M-Pesa comes into play. Just read this article thoroughly so you don’t miss out on any of the many benefits of M-Pesa.
What exactly is M-Pesa and how does it work?
Simply defined, M-Pesa is a mobile money transfer application , a service provided by Safaricom Network Company. Many Kenyans are familiar with this application as it is widely used in the country.
To be honest, I think M-Pesa is the driving force behind the mobile revolution that has taken over the African continent.
M Pesa registration
First, you must have a registered Safaricom sim card. But that’s not all. You also need to register to use it. It’s free and can be done with any M-Pesa agent. All you need is a copy of your ID card. When registration is complete, the network will send an updated menu to your phone and you’re good to go.
Load money into M-Pesa
Once you have registered with M-Pesa, you can instantly add cash to your account. You hand the broker the amount you wish to deposit. The agent carries out this operation from its end.
You will receive an SMS on your phone from M-Pesa to confirm the deposit process. Or money can be loaded onto your phone by another person who is your relative, a friend or even a business associate.
Send money with M-Pesa
If you have funds in your account, you can simply send them to another user of your choice. Just go to the M-Pesa menu on your phone, select the “Send Money” option and enter the phone number of the person you want to send money to.
You will be prompted to enter your M-Pesa PIN as follows, once you press Ok. Your transaction will be processed and you will receive a confirmation message with the recipient’s name. The recipient also receives a notification via SMS confirming the amount and sender.
Pay bills with M-Pesa
Another powerful resource is the fact that you can use it to pay your bills. This made the whole process of paying bills and buying battle cards that much easier. Just as you send money to other users, you can use codes corresponding to a specific company to send money to pay for specific services. This allows us to avoid long queues and save time for other things.
Withdraw money from M-Pesa
With funds in your account, you can easily withdraw cash. You simply visit an M-Pesa agent and proceed with the transaction. To do this, select the “Withdraw cash” option, enter the agent number, which is always on your M-Pesa agent, then enter the amount and finally your M-Pesa PIN.
After the transaction is completed, you will receive a confirmation message and the agent will hand over the withdrawal amount to you. Your last step is to sign the transaction sheet and you are done.
M-Pesa prices, fees
For M-Pesa users in Kenya, answering burning questions about the mobile money transfer service is as important as using the service.
Questions like their fees for withdrawing an agent, the cost of transferring money to an unregistered Safaricom number and tariffs are always in the spotlight. Fees, charges, tariffs and tariffs for M-Pesa largely depend on the amount that users send or withdraw.
Below are detailed statistics of M-Pesa’s transaction fees and rates.
Mpesa Fees – M-PESA Agent Resignation
| minutes (KSh) | Max (KSh) | M-PESA Fees |
|---|---|---|
| 1 | 49 | N / A |
| 50 | 100 | 10 |
| 101 | 500 | 27 |
| 501 | 1,000 | 27 |
| 1.001 | 1,500 | 27 |
| 1,501 | 2,500 | 27 |
| 2,501 | 3,500 | 49 |
| 3,501 | 5,000 | 66 |
| 5.001 | 7,500 | 82 |
| 7,501 | 10,000 | 110 |
| 10.001 | 15,000 | 159 |
| 15.001 | 20,000 | 176 |
| 20.001 | 25,000 | 187 |
| 25.001 | 30,000 | 187 |
| 30.001 | 35,000 | 187 |
| 35.001 | 40,000 | 275 |
| 40.001 | 45,000 | 275 |
| 45.001 | 50,000 | 275 |
| 50,001 | 70,000 | 330 |
Mpesa Fees – Transfer to unregistered users
| minutes (KSh) | Max (KSh) | M-PESA Fees |
|---|---|---|
| 1 | 49 | N / A |
| 50 | 100 | N / A |
| 101 | 500 | 44 |
| 501 | 1,000 | 48 |
| 1.001 | 1,500 | 58 |
| 1,501 | 2,500 | 73 |
| 2,501 | 3,500 | 110 |
| 3,501 | 5,000 | 132 |
| 5.001 | 7,500 | 163 |
| 7,501 | 10,000 | 201 |
| 10.001 | 15,000 | 260 |
| 15.001 | 20,000 | 282 |
| 20.001 | 25,000 | 303 |
| 25.001 | 30,000 | 303 |
| 30.001 | 35,000 | 303 |
| 35.001 | 40,000 | N / A |
| 40.001 | 45,000 | N / A |
| 45.001 | 50,000 | N / A |
| 50,001 | 70,000 | N / A |
Mpesa Fees – Transfer to other M-PESA users
| minutes (KSh) | Max (KSh) | M-PESA Fees |
|---|---|---|
| 1 | 49 | FOR FREE |
| 50 | 100 | FOR FREE |
| 101 | 500 | 11 |
| 501 | 1,000 | 15 |
| 1.001 | 1,500 | 25 |
| 1,501 | 2,500 | 40 |
| 2,501 | 3,500 | 55 |
| 3,501 | 5,000 | 60 |
| 5.001 | 7,500 | 75 |
| 7,501 | 10,000 | 85 |
| 10.001 | 15,000 | 95 |
| 15.001 | 20,000 | 100 |
| 20.001 | 25,000 | 110 |
| 25.001 | 30,000 | 110 |
| 30.001 | 35,000 | 110 |
| 35.001 | 40,000 | 110 |
| 40.001 | 45,000 | 110 |
| 45.001 | 50,000 | 110 |
| 50,001 | 70,000 | 110 |
Mpesa fees – ATM withdrawals
| minutes (KSh) | Max (KSh) | M-PESA Fees |
|---|---|---|
| 200 | 2,500 | 33 |
| 2,501 | 5,000 | 66 |
| 5.001 | 10,000 | 110 |
| 10.001 | 20,000 | 193 |
M Shwari
This is a new addition to the M-Pesa menu. M-Shwari is a system based on M-Pesa. Users have the option to transfer money from their M-Pesa account to their M-Shwari account as savings. These savings can result in the M-Shwari user occasionally getting a loan.
M-Pesa also connects to banks and allows users to link their bank accounts and M-Pesa account. As a result, people can now sit comfortably in their seats. One can send or withdraw money from their bank account through their M-Pesa account.
With the height of this mobile money transfer platform has already reached, it is only bound to get higher. It’s amazing how money transfer has been simplified. All I can say is that it is one of the best systems available and the sky is the limit of what can be achieved with fields like this.
Fast facts on M-Pesa
- Each user line has a maximum of KSHs,100,000. You may not have more than this amount in your line.
- Users are only allowed to run a maximum daily transaction limit of 140,000 KSH and a maximum per transaction limit of 70,000 KSH.
- Users earn what are known as Bonga points when they make a transaction using the mobile-based money transfer and funding service.
- Users are prohibited from depositing funds directly into another M-Pesa customer’s account with an agent.