M-Pesa Paybill Charges in Kenya: A Comprehensive Guide for 2023
Get a complete understanding of M-Pesa Paybill charges in Kenya for 2023 with our comprehensive guide. Navigate the world of paybill tariffs and make informed financial decisions!
As an intelligent consumer navigating the digital realm of mobile money services, understanding M-Pesa Paybill charges in 2023 is indispensable. Safaricom, a pioneer in the mobile money landscape since 1993, introduced M-Pesa, a service that has revolutionized personal and business transactions in Kenya, and this article gives you an in-depth understanding of its cost structure. Let's dive into the world of Paybill tariffs, discover their impact on your transactions, and help you make more informed financial decisions.
How M-Pesa Paybill Work?
The M-Pesa Paybill service is a convenient platform that allows organizations to collect payments from their customers seamlessly. Millions of Kenyans use this service to pay bills, transfer money across different networks, and even conduct short-term fundraisers. However, like any other transaction-based service, charges vary depending on the transaction amount.
The Trio of M-Pesa Paybill Tariffs
Safaricom has divided its Paybill charges into three tariffs:
- Mgao tariff
- Business bouquet tariff
- Customer bouquet tariff
Each tariff caters to different transaction scenarios and has unique charge structures.
1. Mgao Tariff: Sharing the Cost of Transactions
Under the Mgao tariff, both the customer and the business share the transaction cost. When a company transfers money to its customers (or suppliers), both parties bear a portion of the Paybill fees. The 2023 Mgao tariff charges for transactions ranging from KES 1 to 70,000 range from KES 0 to 105.
| Bands (KES) | Charges on the Business | Charges on the Customer | Total Charges (KES) |
|---|---|---|---|
| 1 - 49 | 0 | 0 | 0 |
| 50 - 100 | 0 | 0 | 0 |
| 101 - 500 | 0 | 4 | 4 |
| 501 - 1,000 | 0 | 9 | 9 |
| 1,001 - 1,500 | 5 | 9 | 14 |
| 1,501 - 2,500 | 7 | 12 | 19 |
| 2,501 - 3,500 | 9 | 15 | 24 |
| 3,501 - 5,000 | 17 | 16 | 33 |
| 5,001 - 7,500 | 24 | 16 | 40 |
| 5,001 - 7,500 | 29 | 17 | 46 |
| 7,501 - 10,000 | 38 | 17 | 55 |
| 10,001 - 15,000 | 42 | 18 | 60 |
| 15,001 - 20,000 | 46 | 19 | 65 |
| 20,001 - 25,000 | 51 | 19 | 70 |
| 25,001 - 30,000 | 60 | 20 | 80 |
| 30,001 - 35,000 | 74 | 22 | 96 |
| 35,001 - 40,000 | 78 | 22 | 100 |
| 40,001 - 45,000 | 82 | 23 | 105 |
| 45,001 - 50,000 | 82 | 23 | 105 |
| 50,001 - 70,000 | 82 | 23 | 105 |
2. Business Bouquet Tariff: The Business Covers the Costs
The business bouquet tariff is designed so that businesses bear the entire transaction cost when transferring money to a customer. Customers do not pay any fee. However, this tariff limits businesses to only one business account to send customers money. For transactions between KES 1 and 150,000, the charges on the business range from KES 0 to 12.
| Bands (KES) | Charges on the Business | Charges on the Customer | Total Charges (KES) |
|---|---|---|---|
| 1 - 49 | 0 | 0 | 0 |
| 50 - 100 | 0 | 0 | 0 |
| 101 - 500 | 4 | 0 | 4 |
| 501 - 1,000 | 4 | 0 | 4 |
| 1,001 - 1,500 | 4 | 0 | 4 |
| 1,501 - 2,500 | 8 | 0 | 8 |
| 2,501 - 3,500 | 8 | 0 | 8 |
| 3,501 - 5,000 | 8 | 0 | 8 |
| 5,001 - 7,500 | 10 | 0 | 10 |
| 7,501 - 10,000 | 10 | 0 | 10 |
| 10,001 - 15,000 | 10 | 0 | 10 |
| 15,001 - 20,000 | 10 | 0 | 10 |
| 20,001 - 25,000 | 12 | 0 | 12 |
| 25,001 - 30,000 | 12 | 0 | 12 |
| 30,001 - 35,000 | 12 | 0 | 12 |
| 35,001 - 40,000 | 12 | 0 | 12 |
| 40,001 - 45,000 | 12 | 0 | 12 |
| 45,001 - 50,000 | 12 | 0 | 12 |
| 50,001 - 70,000 | 12 | 0 | 12 |
| 70,001 - 150,000 | 12 | 0 | 12 |
3. Customer Bouquet Tariff: A Win for the Customers
In the customer bouquet tariff, the businesses pay all the fees, and customers don't have to pay anything. However, companies are limited to sending money to only one customer account under this tariff. Business transaction charges range from KES 0 to 105 for transactions between KES 1 and 150,000.
Navigating M-Pesa Withdrawal Charges in 2023
Withdrawing cash through Safaricom has been simplified over the years. In 2023, M-Pesa withdrawal charges range from KES 10 to 300 for transactions between KES 50 and 150,000.
| Withdrawal Amount | MPESA Charges (KES) |
|---|---|
| From Ksh 1 to 49 | Ksh 0 |
| From Ksh 50 to 100 | Ksh 10 |
| From Ksh 101 to 500 | Ksh 27 |
| From Ksh 501 to 1,000 | Ksh 28 |
| From Ksh 1,001 to 1,500 | Ksh 28 |
| From Ksh 1,501 to 2,500 | Ksh 28 |
| From Ksh 2,501 to 3,500 | Ksh 50 |
| From Ksh 3,501 to 5,000 | Ksh 67 |
| From Ksh 5,001 to 7,500 | Ksh 84 |
| From Ksh 7,501 to 10,000 | Ksh 112 |
| From Ksh 10,001 to 15,000 | Ksh 162 |
| From Ksh 15,001 to 20,000 | Ksh 180 |
| From Ksh 20,001 to 35,000 | Ksh 191 |
| From Ksh 35,001 to 50,000 | Ksh 270 |
| From Ksh 50,001 to 150,000 | Ksh 300 |
Demystifying M-Pesa Transactions: The Costs Involved
While some M-Pesa transactions are free (including deposits, registration, buying airtime, changing the PIN, and balance inquiry), most transactions come at a cost. For instance, transferring money to Safaricom users, non-Safaricom accounts, Pochi La Biashara, and Business Tills and withdrawing cash from a Safaricom Agent all incur charges.
Unveiling M-Pesa Global: Send Money Worldwide
M-Pesa Global is a service that enables registered M-Pesa customers to send and receive money globally. The service allows transactions with East Africa (Rwanda, Tanzania, and Uganda) and millions of bank accounts worldwide (US, UK, Europe, and UAE) through Western Union locations and PayPal accounts for a fee. In 2023, M-Pesa global transaction charges for sending money start from KES 100 for amounts up to KES 5,000 and can go up to KES 5,500 for transactions up to KES 700,000.
READ ALSO:
How to Reverse an M-Pesa Transaction: An Easy, Step-by-Step Guide
Conclusion
Safaricom's M-Pesa continues to play a crucial role in transforming the landscape of financial transactions in Kenya. You can effectively plan your transactions and optimize your costs by understanding the charges associated with M-Pesa's Paybill service. Whether you're a business owner or a customer, this guide can help maximize your M-Pesa experience in 2023. Remember that tariffs and fees can change over time, and it is always best to stay updated with the latest information from Safaricom.
By understanding the ins and outs of M-Pesa Paybill charges, you are empowering yourself as an intelligent consumer and contributing to the healthy growth of the digital economy in Kenya. This revolutionary service is a testament to how digital financial solutions can make our lives easier, more secure, and more financially inclusive.
Disclaimer !!!
This article is for informational purposes only and aims to guide the reader on the costs associated with using M-Pesa's Paybill service as of 2023. The tariffs and fees are subject to change. Therefore, users need to check with Safaricom for the latest updates. The author is not liable for any losses, damages, or inconvenience caused due to reliance on the information provided in this article.
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