Safaricom reduces Paybill charges by nearly half

Safaricom reduces Paybill charges by nearly half

Safaricom has announced that Safaricom customers paying between Sh100 and Sh500 will now be charged Sh4, up from Sh23 in the new tariffs effective from Sunday.

Safaricom has announced that Safaricom customers paying between Sh100 and Sh500 will now be charged Sh4, up from Sh23 in the new tariffs effective from Sunday. Transactions below Sh100 are zero rated, the company said.

These charges are part of new charges for money transactions between customers and businesses in connection with the increased demand for mobile payment services.

Payments between Sh500 and Sh1,000 will cost Sh9, down from Sh23, while payments between Sh50,000 and Sh150,000 will cost Sh105, down from Sh210.

Meanwhile, businesses sending money to customers will be charged Sh5 for payments between Sh100 and Sh1,500, compared to the current Sh15.27, while payments between Sh20,000 and Sh150,000 will now cost Sh12, up from Sh22.4 .

“Under the new changes, M-Pesa business fees have been reduced by an average of 41 percent, while M-Pesa Paybill fees have been reduced by an average of 47 percent. Paybill rates also apply to customers sending money to the bank,” the company said.

New fees

Paybill’s fee reduction comes as many businesses switch to the platform after ditching the Lipa Na M-Pesa Buy-Goods payment option, which is eating into their revenue.

Safaricom also announced new bank account to M-Pesa transaction fees where bank to M-Pesa transaction fees were reduced by an average of 61 percent and M-Pesa to bank fees were reduced by an average of 47 percent.

Safaricom reduces Paybill charges by nearly half
Safaricom reduces Paybill charges by nearly half

This comes after the Central Bank of Kenya (CBK) announced two weeks ago the reintroduction of fees for transactions between mobile money wallets and bank accounts following discussions with lenders and mobile money payment companies.

CBK waived the fees in March 2020 as part of measures the government introduced to facilitate the use of mobile money to prevent the spread of Covid-19.

“The reduced M-Pesa bank account tariff will also apply to all M-Pesa payments customers use for services such as electricity, hospital bills, schools, government payments, etc. to ensure affordability,” Safaricom said in earlier statement last week.

Source: Nation

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