Safaricom reduces M-Pesa transaction fee for low, medium value transfers

Safaricom CEO Bob Collymore says reduction in M-Pesa transaction fee will provide Kenyans with affordable access to basic financial services.

Nairobi, Kenya: Mobile service provider Safaricom Tuesday announced a reduction in cost of sending money via M-Pesa for amounts ranging between Sh10 and Sh1,500.

The new tariffs will see up to 67 per cent reduction in cost of sending money in the low and medium tiered bands. The reduction applies to person to person transfers.

However, the cost of withdrawal, transaction fee for Lipa Na M-PESA and all other tariffs has not been affected in the recent changes.

“We have spent a considerable amount of time analyzing M-PESA usage trends and we have established that over 65% of all M-PESA person to person transactions are within the Sh10 – Sh1,500 band,” Safaricom CEO Bob Collymore.

“It is our belief that by lowering the cost of these transactions we will provide an increased number of Kenyans with affordable access to basic financial services,” he added.

Safaricom has also signaled that it had rationalised the tariffs for sending higher amounts exceeding Sh1,501 to be an average of 0.8 percent of the transaction value.

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The new tariffs, are set to take effect from Thursday August 21.  

The tariff announcement comes as Safaricom prepares to move the M-PESA’s backbone infrastructure from Germany to Kenya, in an investment that will open up more opportunities for cashless transactions within the country.