Paystack in Kenya: Registration, Documents Needed, Fees, Charges, and Usage with M-PESA

In the ever-evolving landscape of online payments, Paystack has emerged as a game-changer for businesses in Kenya. With its official launch in Kenya following authorization from the Central Bank in December 2022, Paystack has quickly become a beacon of hope for entrepreneurs and businesses alike. This article delves into the nitty-gritty of Paystack's operations in Kenya, including registration procedures, required documents, fees, charges, and how to use it seamlessly with M-PESA.

Key Takeaways

• Paystack's official launch in Kenya marks a significant milestone, providing businesses with various payment options and growth-enhancing features.
• The registration process with Paystack is user-friendly, accommodating both individual business owners and registered companies.
• Paystack's competitive pricing and transparent fee structure make it a cost-effective choice for businesses of all sizes.
• Integrating M-PESA with Paystack offers added convenience for businesses operating in Kenya.

Paystack, a leading payments technology company in Africa, has made significant strides by expanding its operations into Kenya. This move has ushered in a new era of online payments, allowing businesses to accept payments through various channels, including cards, M-PESA, and Apple Pay. Additionally, Paystack provides various features that can empower businesses in Kenya to streamline their operations and enhance their growth potential.

Registration Process

The journey to harnessing the power of Paystack begins with a straightforward registration process. Whether you are an individual business owner or a registered company, Paystack makes it easy to start. Here's a brief overview of the registration process:

For Individual Business Owners (Starter Businesses)

1. Create Your Free Account: Visit the Paystack website at paystack.com/signup and follow the step-by-step instructions to create your free Paystack account. This process typically takes just a few minutes.
2. Documents Required: As an individual business owner without a registered business, you must provide a copy of your ID card, proof of address, and a bank account in your name.
3. Activation: Once you've completed the registration and submitted the necessary documents, you can accept accurate payments within 24 hours of sending an activation request.

For Registered Businesses

1. Create Your Free Account: Visit the Paystack website and create your free Paystack account.
2. Additional Documents: Besides an ID card and proof of address, registered businesses must upload their business registration documents and have a corporate bank account.
3. Activation: Similar to individual business owners, registered businesses can start accepting payments within 24 hours after submitting an activation request.

Charges

One of the appealing aspects of Paystack is its competitive pricing, making it a cost-effective choice for businesses. Here's a breakdown of the fees associated with using Paystack in Kenya:

• Local Transactions: Paystack charges a fee of 2.9% per local transaction.
• International Card and Apple Pay Transactions: Paystack charges a fee of 3.8% per transaction for international card and Apple Pay transactions.
• Mobile Money (M-PESA): When customers pay via M-PESA, Paystack charges a fee of 1.5% per transaction.

Using Paystack with M-PESA

M-PESA is a widely used mobile money platform in Kenya, and the integration of M-PESA with Paystack opens up new avenues for businesses. Here's how you can seamlessly use Paystack with M-PESA:

1. Accept Payments via M-PESA: Paystack allows businesses to accept payments from customers using M-PESA. This is especially valuable for businesses that cater to a local customer base who prefer using M-PESA for their transactions.
2. Transfer Money to M-PESA Wallets: Paystack simplifies transferring money to M-PESA wallets. Businesses can use this feature for various purposes, including paying out salaries and vendors.
3. Automated Subscription Payments: Paystack facilitates the collection of recurring payments automatically. This feature is beneficial for businesses that offer subscription-based services.
4. Transaction Dispute Management: With Paystack, businesses can efficiently handle transaction disputes, including refunds and chargebacks, directly from the Paystack Dashboard.

READ ALSO: M-Pesa Business App: How to Download, Registration, and Services

Final Thoughts

Paystack's expansion into Kenya represents a pivotal moment in the evolution of online payments in the country. With its user-friendly platform, transparent pricing, and integration with M-PESA, Paystack is poised to empower businesses to thrive in the digital economy. Whether you're a small retailer, a startup, or a government agency, Paystack offers the tools and support you need to scale and succeed.

FAQs

How do I sign up for Paystack in Kenya?

 To sign up for Paystack in Kenya, visit paystack.com/signup and follow the step-by-step instructions on your screen. The process typically takes just a few minutes.

Can I use Paystack even if I don't have a registered business?

 Yes, Paystack offers features for individual business owners without registered businesses, which they refer to as Starter Businesses.

What documents do I need to create my free Paystack account? 

You'll need a copy of your ID card, proof of address, and a bank account in your name for individual business owners. Registered businesses will require additional documents, such as business registration papers.

How long does it take to go live after I create my Paystack account?

 You can start accepting actual payments within 24 hours of sending in an activation request.

Which payment channels does Paystack support in Kenya? 

Paystack supports payments via cards (Visa, Mastercard, American Express), M-PESA, and Apple Pay.

When is Paystack coming to my country if I'm away from Kenya? Paystack is expanding across Africa. Share your email with them on their website to find out when Paystack will be available in your country.

How can I contact the Paystack team in Kenya? 

You can contact the Paystack Kenya team at [email protected] or visit their office in Nairobi.

What value-added services does Paystack offer for Kenyan tech startups and digital agencies? 

Paystack's Catalyst program offers resources to help startups scale, including access to the Paystack Startup Bundle and expert feedback on fundraising and accelerator applications. Digital agencies can become Paystack Service Partners and gain benefits, including priority support and exposure to new clients.