The most significant technological advancement to emerge from Kenya is M-Pesa. It has long been the market leader for mobile money transmission. It is a very basic yet crucial platform. M-Pesa transactions don’t need a connection to the internet. M-Pesa is fully accessible from even the most basic phone. You may connect with only a SIM card that supports M-Pesa.
M-Pesa mobile money
You may send and receive money on your mobile phone using the transaction service M-Pesa. The service makes use of retail locations around the nation as deposit and withdrawal locations. You can do both exchanges—from actual money to a digital balance—there. You may use M-Pesa to transfer money to and from bank accounts since it is connected to almost all Kenyan financial institutions. You may transfer any available amount to another mobile money user using your M-Pesa balance. You can also use it to pay bills and make purchases at most merchants. In many aspects, the Central Bank of Kenya functions like a bank since it oversees M-Pesa. As a result, M-Pesa offers the same level of security as a bank for your money.
Uses of M-Pesa
- Pay for the products and services.
- Money may be sent and received internationally.
- Purchase airtime
- Pay for subscription services and expenses like water and electricity.
- Pay rent.
- Directly pay KRA your taxes.
- As a bill manager, you may schedule your bills to be paid on the specified date and get reminders.
- For group fundraising, such as wedding committees, or to raise cash in an emergency.
- To produce an account of income and expenditure as a business through their monthly statements.
- To access loans and savings facilities through M-Shwari, M-Pesa’s dedicated service for this function.
Lipa na M-Pesa
The service that allows you to pay retailers and service providers is called Lipa na M-Pesa. “Buy Goods” and “PayBill” are the two choices available under this service.
Buy Goods
Buy Goods mostly pertains to companies that use frequent consumer cash collections as a component of their operation. These include small-scale service businesses like salons and barbershops, as well as kiosks, eateries, supermarkets, and retail stores. In a manner comparable to depositing money in a collection box after collecting it, the total gathered is deposited into one account. Customers pay nothing for Buy Goods, however, the company charges the business owner 0.5% of collections up to a maximum of Ksh 200. Collections below 200 Ksh are free.
Pay Bill
Pay Bill is mostly relevant to businesses that routinely collect money from their customers. The money for this service is directed to the client’s account through an extra “account number” field. It functions in the same manner that you would deposit money into your bank account. Depending on the contract with Safaricom, Pay Bill has different costs for the customer and the company.
How to activate M-Pesa
It is necessary to register a phone number with Safaricom before activating your M-Pesa. Bring your smartphone and an acceptable form of identification to an M-Pesa agent, a Safaricom retail location, or a care desk. Your national ID, Kenyan passport, foreign passport, military ID, or Kenyan foreign certificate are all acceptable forms of identification. Keep in mind that a Kenyan ID or passport must be used to register an agent. Only at a Safaricom store or service desk may other types of identification be registered. A message with a PIN will be sent to you as confirmation that your line has been successfully registered. All you have to do to activate is this:
- From the SIM app, choose M-Pesa.
- From the menu, select Activate (or Wezesha for the Swahili language).
- Enter the PIN that you were given upon registration.
- Set your PIN.
- Enter the identification number you used to register.
- A message containing your account balance and a confirmation of the activation’s success will be sent to you.
M-Pesa and banking
Banking is now so easy because of M-Pesa. You no longer need an ATM to access or deposit your money. An M-Pesa pay bill number may be used to simply transfer money to and from your bank. All banks use the same depositing procedure. Take the following actions if you’re using the SIM app:
- Choose “M-Pesa” from the first page’s options.
- On the subsequent page, choose “Lipa na M-Pesa.”
- Then click “Pay Bill.”
- Choosing “Enter business no.” The table below provides an alphabetical list of the business phone numbers for the most popular banks.
- Simply click “Account number.”
- Put in the account number where you want to send the money.
- Put the amount in and hit “ok” on the following page.
- Specify your PIN.
- You’ll see a pop-up confirming the destination and the specifics of your transaction. You’re done once you confirm.
The procedure is somewhat different if you’re using the Safaricom app.
- Launch the app.
- Decide on Lipa na M-Pesa.
- Your first stop will be the BUY GOODS page. Change the tab to PAYBILL at the top of the page.
- There are three boxes with labels on the following page. In the first box, type the pay bill number of the bank you intend to use.
- The second box is for entering the account number.
- In the third box, enter the sum.
- Pick CONTINUE.
- After checking your entries again, choose PAY.
- You’ll see a pop-up confirming the destination and the specifics of your transaction. That’s it; just choose PAY.
