The overall transaction fee is far lower for sending to a registered user than to a. We would like to show you a description here but the site wont allow us. The nature of the relationship between mpesa and other financial products remains a matter of debate. For most of the existence of m pesa, the ratio of emoney held on agent. Preliminary results please do not cite or circulate felipe dizonyerick gongzand kelly jones x october 2015. Usage and impact from mpesa august 2009 brief despite growing agreement on the potential of technology to expand access to. The introduction of mpesa in 2007 has catalyzed a pro found transformation in kenyas financial system. Posted on march 31, 2011 by ken western union formally announced today its linkup with m pesa to allow those of us in less developed countries, from an ict standpoint, to make money transfers to m pesa accounts. Financial services for the underbanked contributed. The contribution of m pesa to deepening financial inclusion for the poorest socioeconomic groups in kenya is significant. Once done, arrange the files in the order that you want, by dropping them in the sidebar. M pesa is a unique innovation that is rapidly evolving laws must be flexible in order to accommodate new changes and not confine development of new products.
You can now receive your mpesa statement directly to your email address in pdf format advice the customer they need a pdf reader e. From the safaricom website, we have data on the number of agents. Savings balances earn interest on a sliding scale of between 2% and 5% apr, while onemonth loans attract a 7. In april 2008, safaricoms ceo reported that mpesa had well over two million active subscribers, transmitting over 100 million kshs. From the safaricom website, we have data on the number of agents monthly from april 2007 through april of 2011. M stands for mobile and pesa is a swahili word for money.
You can also use your mpesa to buy airtime for your phone, or for someone else. Mpesa charges depend on the amount you are sending or withdrawing. Mpesa and access to health in kenya the most common way one hears kenyans refer to mpesa in relation to health care is as emergency moneyfunds received quickly to obtain immediate. Multiplying this by the number of mpesa agents gives our estimate of total emoney held by mpesa agents. Mpesa launches uktokenya mobile money transfer service. Until we get mpesa in the united states africommons. Practitioners insight mpesa a success story of digital. Get the latest safaricom 2018 m pesa withdrawal charges and rates including tariffs, paybills and many more m pesa. Multiplying this by the number of m pesa agents gives our estimate of total emoney held by m pesa agents. Mpesa continues to dominate kenyan market mobile world live. Apart from kenya, other countries using the mobile system include. This service is free and you will only pay for the airtime purchased. Transfers can be made seamlessly from mpesa to mshwari, earning aninterest rate of 25% per annum and funds can be withdrawn through pesas network of m agents.
Since the launch of mshwari in 2012, which offers a savings account and access to digital credit, the market for digital credit has expanded rapidly in kenya. M pesa transaction cost for withdrawing from m pesa agent. While mpesa has been touted as a savings tool for the poor, there is little evidence to suggest that the service is widely used to store value as savings 4 isaac mbiti and david m. M pesa is simply a mobile phonebased money transfer application. O16,o33,o55 abstract mobile money is a tool that allows individuals to make. Documents in econstor may be saved and copied for your. Pdf an analysis of mpesa use in international transactions.
M pesa enables the users to deposit, withdraw, transfer money and pay for goods and services through the mobile phone. Savings balances earn interest on a sliding scale of. Experimental evidence on saving and h school in kenya. The fee structure is complicated and, because kenyans are. Financial services for the underbanked contributed by. Therefore, you will have to send the 140,000k in two batches. Tanzania, afghanistan, south africa, india, egypt, lesotho and mozambique. Mpesa has over 17 million users in kenya which is more than 60% of the countrys adult population. The case of mpesa in kenya olga morawczynski, university of edinburgh gianluca miscione, university of oslo abstract this. Jun 23, 2012 m pesa is also in tanzania m pesa, south africa, egypt, and afghanistan here are some similar platforms in other countries. Preliminary results please do not cite or circulate felipe dizonyerick gongzand kelly jones x october 2015 abstract working with a sample of vulnerable women in kenya, we conduct a. Mpesa account must be registered under an individual and required identification documents provided. Aug 04, 2010 in so doing, we draw extensively on a sequence of four papers which readers can refer to for more detailed accounts of the m pesa story. This exceeds the reach of any other financial service in kenya.
M pesa account must be registered under an individual and required identification documents provided. In essence, m pesa is a persontoperson p2p money transfer system that allows individuals to make payments and send remittances. Oct 17, 2018 mpesa has over 17 million users in kenya which is more than 60% of the countrys adult population. As shown in figure 1, safaricom is using a tiered fee model where users are charged. This means that no transaction details are sent to the splynx server. Kenyas safaricom has partnered with mobile phone service provider mtn in a new venture that will enable its 19. Download pdf files related to products and services offered by equitel equity bank. Today, over two years since its launch, mpesa has gained 7 million registered customers and has 10,000 agents spread across the country.
M pesa charges will depend on the amount you are sending or withdrawing. The m pesa international money transfer imt service lets people in the uk send money directly to the mobile phones of people who have an account with the firm in kenya. Digital credit is now offered by the three largest kenyan banks kenya commercial bank, equity bank, and cooperative bank, as well as a growing number of fintechs and nonbank. This paper shows how mpesas success has led to a series of endogenous innovations that have shaped. A case study of the critical early adopters role in the rapid adoption of mobile money banking in kenya. Since the inception of mpesa, financial inclusion rates that is, the percentage of kenyans with any sort of access to formal financial institutions have nearly tripled from fewer than 25 percent in 2006 to 67 percent in 20. Send or withdrawal money stressfree and at affordable rates. Mpesa transaction cost for sending to airtel money, tkash, equitel users. Prior to m pesa, mobile phone customers had engaged in trading prepaid airtime. The story so far tamara cook and claudia mckay access to finance forum. Mpesa is a money transfer system operated by safaricom, kenyas largest cellular phone. A good example of such a service is safaricoms mpesa, which was introduced in march 2007, in kenya. Safaricom implemented the new mpesa rates after the kenyan government proposed a 2% increase on the excise duty charged on service providers. M pesa, a mobile banking system in kenya, will be the focus of this paper.
The mpesa tariffs include withdrawal fees, and are differentiated. You can use your m pesa menu to buy airtime for your phone, or for someone else. Feb 08, 2010 300 randomly selected m pesa agents and 50 m pesa head offices found almost 40% of households use m pesa, with 63% sending regular financial support. Safaricom, mpesa has become ubiquitous to everyday life in the. The study indicates that 96 percent of kenyan households had access to mpesa as of 2016. But i will mention a few that i have observed mpesa is offered by safaricom, kenyas. The economics of m pesa william jack and tavneet suri nber working paper no. Second, the effect of mpesa can be assessed from 2009, as the proportion of financial inclusion rose from 26. This increase forced safaricom to adjust upwards the amount they charge you to transact mpesa. Mpesa mpesa is a money transfer service wherein users can use their mobile phones to store and transfer money. You cannot deposit money directly into another mpesa customers account at an agent outlet. This was just over a year after mpesa was launched. The impact of mpesa in kenya, nber working paper no.
Mpesa rates, mpesa tariffs, mpesa withdrawal charges, m. Do the mpesa rails contribute to financial inclusion. O16,o33,o55 abstract mobile money is a tool that allows individuals to make financial transactions using cell phone technology. One theory posits that mpesa substitutes with informal savings products and complements with. M pesa transaction cost for sending to m pesa user. Check the mpesa rates for withdrawal or mpesa transfer rates and know the amount you will be charged on the mpesa charges. Mpesa was originally introduced in kenya as an alternative way for the unbanked. Heyer and mas 2009 on the country factors that led. Mobile financial services such as mpesa in kenya are said to promote inclusion. How mpesa works, its services, charges and transaction rates. For example, in the mpesa tariff schedule, the fee for withdrawing up to.
The case of m pesa in kenya olga morawczynski, university of edinburgh gianluca miscione, university of oslo abstract this submission will examine how trust can emerge and be sustained in the context of mobile transactions. M pesa was originally introduced in kenya as an alternative way for the unbanked. Mpesa was the first product of its kind to be introduced in kenya and is. M pesa transaction cost for sending to airtel money, tkash, equitel users. M pesa is rightly lauded as a global success story. You can use your mpesa menu to buy airtime for your phone, or for someone else. Heyer and mas 2009 on the country factors that led to m. Mpesa charges will depend on the amount you are sending or withdrawing. Over 2 trillion shillings are transacted yearly through the service in the country. A mobile banking service that allows users to store and transfer money through their mobile phones.
The results were presented in a table format appendix 2. This is after treasury cs henry rotich increased excise duty on all mobile money transfers by 2 per cent, to the current rate of 12%. Since the launch of m shwari in 2012, which offers a savings account and access to digital credit, the market for digital credit has expanded rapidly in kenya. Its conveniences outweigh any shortcomings my a large margin. Since the inception of mpesa, financial inclusion rates that is, the percentage of kenyans with any sort of access to formal financial institutions have nearly tripled from fewer than 25 percent in 2006 to. Safaricom partners with mtn to spread mpesa services to. Background 1 developed in 2005 but launched in 2007 after the regulators had. M pesa servers will accept any payments request, as long as the msisdn phone number is allowed to use m pesa services. Therefore most of the times my mpesa account has some spare amount for emergency needsit varies, but usually it is ksh400500. Analysis of financial institutions riding the mpesa rails sadana et al. Mpesa and access to health in kenya the most common way one hears kenyans refer to mpesa in relation to health care is as emergency moneyfunds received quickly to obtain immediate necessary treatment. Mpesa is also in tanzania, south africa, egypt, and afghanistan here are some similar platforms in other countries.
What are some problems of the mpesa payment system. In which countries is the mpesa or similar system accepted. The agent assistant will then proceed with the registration of the customer on the m pesa system, during which the following details will be provided to m pesa via the agent handset. Learn more about equitel my money how to send money to another phone, rates to send to equitel numbers vs. The contribution of mpesa to deepening financial inclusion for the poorest socioeconomic groups in kenya is significant. Pdf in recent times, inexpensive mobile phone technology has become widely. The agent assistant will then proceed with the registration of the customer on the mpesa system. Equitel ussd codes, top up, buy airtime from mpesa, check. A survey of 3000 households in late 2008 showed that the average mpesa user is, in comparison to non users, twice as likely to have a bank account 72% versus 36 %. Following the launch of mpesa in 2007, kenya has emerged as a global leader in the development of mobile money and in increasing rates of financial inclusion. The mpesa international money transfer imt service lets people in the uk send money directly to the mobile phones of people who have an account with the firm in kenya. Mobile payments go viral mpesa in kenya world bank documents. Mpesa registration is free and there are no charges when you generate your safaricom mpesa statement.
Apr 23, 2015 kenyas safaricom has partnered with mobile phone service provider mtn in a new venture that will enable its 19. The economics of mpesa william jack and tavneet suri nber working paper no. To initiate mpesa self reversal, send the transaction con. However, mpesa charges and rates went up a little in july 2018. Currently, it costs more amount to send money to an unregistered number in 2019. Description of mshwari mpesa subscribers now over 15 million just need to update their menus, and then they canenrol instantly through the dropdown menu on the phone.
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