Paybill charges set to drop as Safaricom reinstates Bank-Mpesa transaction fees

paybill charges

Mobile payment provider Safaricom is set to lower its Paybill charges for customers and businesses starting January 1, 2023. This move is in response to the increasing demand for mobile payment options, particularly as many businesses have turned to Paybill due to the high fees charged by Safaricom on Lipa Na MPesa. The new Paybill charges will see payments between KES 100 and KES 500 cost KES 4, down from the current charge of KES 23, while payments between KES 50,000 and KES 150,000 will cost KES 105, a reduction from the current charge of KES 210. Businesses sending money to customers will be charged KES 5 for payments between KES 100 and KES 1,500, a decrease from the current charge of KES 15.27.

In addition to these changes to Paybill charges, Safaricom will also be reinstating fees for transactions between bank accounts and M-Pesa on the same day. These fees had been waived for the past two and a half years. The new charges for these transactions will see bank-to-MPesa transaction fees reduced by an average of 61%, while MPesa-to-bank charges will be reduced by an average of 47%. These changes follow negotiations between the Central Bank of Kenya (CBK), banks, and mobile money payment firms. The CBK had previously waived these charges in March 2020 as part of emergency measures to encourage the use of mobile money and prevent the spread of COVID-19.

The changes to Paybill charges and the reintroduction of fees for transactions between bank accounts and M-Pesa may bring several benefits to small businesses. Lower transaction fees will likely make it more cost-effective for small businesses to use mobile payment options, allowing them to save on fees and potentially increase profits. In addition, the increased use of mobile payments may make it easier for small businesses to process transactions, particularly in the current environment where there is a need for contactless payments. Overall, the changes to Paybill charges and the reintroduction of fees for transactions between bank accounts and M-Pesa may help to support the growth and success of micro and small businesses.

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Odipo Riaga2215 Posts

Film Director, Tech and Business Blogger, Chess Player, and Photographer. God is Science.

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