How To Start Mpesa Business In Kenya – How to become an MPesa agent: M-Pesa business is one of the most popular in Kenya, but many people do not know how to become an M-Pesa agent. Let’s see how you can start this business and the required requirements.
To become an M-pesa Agent, all potential agents must be registered by Safaricom as a limited company or equivalent with 3 outlets willing to offer M-PESA under the M-PESA business name.
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Proposed outlets will be inspected prior to commencement of business and only applications for outlets in eligible areas will be considered.
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The biggest challenges most entrepreneurs face when starting their Mpesa business is the minimum investment set by Safaricom.
Safaricom recommends that agents must employ competent staff with a minimum of KCSE to manage the service. Some of the daily tasks that agents will have to perform include:
An agent helps you get an M-Pesa line and makes sure you meet all the necessary requirements before signing the contract to start the business.
The amount you can make in M-Pesa business can be as low as KSh4 per transaction, so it means your business needs to be able to attract a lot of people to make big money.
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This also means that you need to set up your store in a busy area where more people can visit your store and access M-Pesa services.
High commissions- with mpesa aggregate lines you will get Safaricom’s recommended commission split which is 80% for you and 20% for your boss. This is by far the best rate as unmerged lines attract up to 40% and sometimes you don’t know what you’ve earned for the whole month as unscrupulous super sellers can take even more without your knowledge. t tracking summary / agent line performance report.
Direct payment of commissions from Safaricom- You don’t have to wait for your boss to pay you commissions, you will receive your work bill directly from Safaricom on the 1st of the new month.
No delay in sending commissions – All the cash commissions accumulated in the last month are merged by 0059 hours before the start of a new month and yes, your commission is due by the 1st of a new month, unlike non-merged lines where bosses can take time. to send your commissions.
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Faster resolution of conflicts: In some cases there may be some problems with your manager or vice versa, for example. Some bosses will feel that the leased line is not performing well (getting less commission than expected) and may want to retrieve it without your permission. These scenarios are easily resolved if you are using an aggregated line, as the arrangement is informal, as is the non-aggregate.
Float Management- Aggregate lines come with a float management feature which allows you to easily manage your line/management e.g. allowing you to get cash from super agents (banks, certified super agents Mpesa outlets) by exchanging excess e-float for cash and vice versa. This is very economical for any mpesa agent as it gives you a very affordable way to balance and manage money in your coffers. How to become an MPesa agent.
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Bizna Digital Services is a Business-to-Business Development portal that supports access to better goods and services by marketing and promoting businesses. This article explains everything you need to get started, updated commissions (2022), profit expectations and Mpesa business challenges.
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An M-pesa store is definitely a profitable business venture and remains attractive because it can be seamlessly integrated into other businesses.
M-pesa has been the largest money network in the world. The platform has enabled millions of people around the world to access safe and secure mobile banking and money transfer solutions.
The introduction of mobile money transfer system to neighboring countries offers a huge opportunity for any business to earn money through smart trading.
In addition, all existing and emerging e-commerce platforms have integrated M-pesa payment gateways into their systems. This directly means good business for M-pesa agents in terms of more deposits, transaction fees and withdrawals.
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The M-Pesa model was a pioneering innovation for the African continent and is now used as a model for many mobile money transfer systems around the world. Safaricom is a product that stands out and continues to grow every day as other financial sectors continue to suffer losses.
In its recently released FY 2020 results, M-Pesa accounted for 75 percent of the company’s overall revenue growth. Mobile money transfer services account for 31.2 percent of Safaricom’s service revenue due to new businesses branded payments, savings and loans (M-Shwari, Fuliza and KCB MPesa).
It also includes online money transfers such as the recently launched M-Pesa to PayPal. Mobile money is now commonplace in Kenya. And with over 30 million subscribers, Safaricom’s MPesa service remains the most popular mobile transfer option.
These numbers continue to grow every day. MPesa business is one of the most profitable small capital businesses in Kenya. In a good month, you can earn as much as Ksh 50,000 depending on location and traffic flow.
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These statistics, along with the incredible profits generated by M-Pesa, tell how profitable MPesa is as a business opportunity. Being an M-Pesa agent is a good business opportunity.
To start an MPesa store, you will need to do a few things. First, you need to seek approval to run the business. Safaricom will require certain legal requirements.
1. Register a limited company: In order to operate an MPESA store (some call it an MPesa agent), you must first register a limited company.
Previously, the process of registering a company in Kenya was quite difficult as it was long, expensive and tedious. However, today the registration process costs less, can be done in three easy steps and in the comfort of one’s own home. All you have to do is do a name search and register your company name online on the eCitizen platform.
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2. Set up 3 outlets: Safaricom requires that there are at least 3 outlets ready to offer MPESA with business names. The company MUST also be in business (and possibly trading) for at least 6 months.
4. Start-up capital required: In terms of working capital, you need a minimum investment of Sh100,000 to operate as an M-Pesa floater.
5. Once you submit the application forms and fulfill all the requirements, you will be given a box number to start trading.
Safaricom has two ways to run your MPESA outlet, as a standard outlet or as a sub-dealer.
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This is the most recommended outlet because you have to go through the entire process above and register as an agent.
However, you will need to work under a licensed agent by purchasing an MPESA line and paying a commission for using the lines.
Actually having to register a company and all the bureaucracy, the costs involved; it will take many months to set up which is not reasonable for small startups.
So there is only one option left, which is to get an Mpesa line from an already registered company with a small monthly fee.
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Think of it like someone renting out their Mpesa line to you and you will share the profits every month when Safaricom pays you.
Problems such as your principal blocking your line, delays in your commission shipments, and lower commission percentages for your sub-dealer business.
Aggregate lines were a solution to fraudulent super-agents who demanded additional commissions other than what Safaricom recommended.
Changing the aggregate line will guarantee higher commissions for your cash, it will also ensure timely payment of commissions on the 1st or 2nd of the new month.
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If you’re a new agent, you don’t want to make a smaller deal by getting a non-merged line.
Top Commissions – Aggregated MPesa lines will earn you Safaricom’s recommended percentage of split commissions, which is 80% for you and 20% for your boss.
Direct and Timely Commission Payments from Safaricom – With Unified Lines, you will receive commissions directly from Safaricom into your working account on the 1st of the new month.
Formal and faster resolution of disputes – Aggregate lines have the advantage of having a formal agreement with your lead agent.
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In cases where conflicts arise between you and your manager, resolution is easy. This would not be the case with unaggregated Mpesa lines where the arrangement is informal.
For example, some unknown principals may feel that their leased lines are receiving less commission than expected and may want to repossess them without your approval, an informal agreement is risky in such cases.
Float Management: Aggregate lines come with a float management feature that allows you to manage your line/box.
For example, you can get money from super agents (banks, certified super agents, Mpesa outlets) by exchanging excess e-float.
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