Lipa na M-Pesa merchants to pay reduced fees from April


Safaricom will from next week implement a 50% tariff reduction for all Lipa Na M-PESA Buy Goods merchant fees. Under this new Lipa Na M-PESA tariff, merchants will be charged a maximum of 0.5% of the transaction amount, down from the previous maximum of 1%. In addition, Lipa na M-PESA merchants will charged a flat fee of Kshs 200, for any payments above Kshs 40,000.

“We trust that this development will boost the attractiveness of the Lipa Na M-PESA platform to more small and medium enterprises while making the service more affordable compared to other alternatives in the market,” said Bob Collymore, CEO, Safaricom.

In addition, the M-PESA Kadogo tariff announced in October 2016 will be expanded for Lipa Na M-PESA Buy Goods to enable merchants to receive all transactions of Kshs 200 and below at no cost.

Merchants will also enjoy the convenience of instant processing of payments made through Lipa Na M-PESA to their bank accounts, with the service now available at 23 participating banks. This will cut down the time that it takes to move money from a Lipa Na M-PESA till to a bank account from as much as 28 hours down to seconds.

Safaricom’s reduction of the Lipa Na M-PESA tariffs and inclusion of more financial institutions under Real Time Settlements targets small and micro businesses, such as kiosks, bodabodas, matatus, newspaper vendors, hawkers, hotels, restaurants and small eateries amongst others. According to the Economic Survey, 80% of Kenyans are employed in the informal sector.

The changes in Lipa Na M-PESA will be effective in the first week of April 2017. Lipa Na M-PESA PayBill and Gaming merchant tariffs, and Lipa Na M-PESA petrol station tariffs will not be affected by these changes.

Safaricom has also announced availability of M-PESA functionality in the mySafaricom App, which will see the more than 24 million M-PESA customers enjoy the convenience of transacting from their Android and iOS smartphones.

The app enables customers to select contacts from their phone when sending money and has a vastly improved implementation of the name search function Hakikisha — which allows the sender to confirm the recipient before the money is sent.

Customers will also have the convenience of confirming the names of agents or businesses before sending or withdrawing money as they complete Lipa Na M-PESA transactions.

In addition to eliminating the possibility of an error when performing M-PESA transactions, the mySafaricom App now offers a more refined user experience when interacting with M-PESA, enabling faster completion of transactions.

Banks and financial Institutions Offering Instant Lipa Na M-PESA to Account Transfers

# Real Time Settlement Provider Real Time Settlement Support
1 Equity Bank USSD + Web
2 Kenya Commercial Bank USSD + Web
3 Co-operative Bank USSD + Web
4 Diamond Trust Bank USSD + Web
5 NIC Bank USSD + Web
6 Standard Chartered Bank USSD + Web
7 Family Bank USSD + Web
8 Stanbic Bank USSD + Web
9 Consolidated Bank USSD only
10 National Bank of Kenya USSD + Web
11 Gulf African Bank USSD + Web
12 Eco Bank USSD + Web
13 First Community Bank USSD only
14 Commercial Bank of Africa USSD + Web
15 Bank of Africa USSD + Web
16 Chase Bank USSD + Web
17 Credit Bank USSD + Web
18 UBA Bank USSD only
19 Jamii Bora Bank USSD only
20 Spire Bank USSD + Web
21 Paramount Universal Bank USSD + Web
22 Prime Bank USSD + Web
23 Sidian Bank USSD + Web
24 Safaricom SACCO USSD only