M-PESA prospects have been restricted to a little over $1000 in daily transaction caps for a very long time. This modifications immediately because the telco additionally increases its pockets limit.
Safaricom’s M-PESA prospects can now maintain up to KES 500,000 ($3,480 within the present alternate fee) of their pockets accounts following approval from the Central Bank of Kenya. The modifications will take impact from August 15.
Safaricom has additionally elevated the daily transaction limit to KES 500,000 ($3,480) per day. The present per transaction limit of KES 150,000 ($1,043) stays unchanged, permitting prospects to conduct a number of transactions up to the daily limit of KSh 500,000 ($3,480).
Safaricom CEO Peter Ndegwa believes the rise in cashless transaction limits would assist small companies conduct enterprise higher. “We appreciate the role that the Central Bank of Kenya has played by constantly providing guidance on innovations and protections that we have put in place to strengthen M-PESA’s adherence to KYC, anti-money laundering, and other financial regulations and safeguards. The increased account limits will provide customers, especially small businesses, with increased convenience as the share of cashless transactions continues to rise,” he commented.
According to the telco, this adjustment is about to cater to companies with greater transaction values, significantly small and medium enterprises, because the proportion of cashless transactions grows.
Safaricom backs this declare with some key numbers. For occasion, from the final monetary 12 months to March 2023, greater than 606,000 companies acquired funds via Lipa Na M-PESA, with a whole of KES 1.625 trillion ($11.3 billion) transacted within the 12 months. Lipa na M-PESA contributes about 40% of the service’s service income. The cell cash product is the telco’s largest earner amongst different M-PESA-related merchandise.
In the identical interval, M-PESA’s income grew 8.8% to KES 117.19 billion ($816 million), backed by elevated utilization and chargeable transactions. These numbers, nevertheless, had been decrease than these recorded within the earlier monetary 12 months. Safaricom mentioned this was due to macroeconomic results.
Other key M-PESA stats (as of March 2023)
Safaricom mentioned in a report that its one-month energetic M-PESA ARPU rose 1.9% to KES 311.28 ($2). Transaction worth and volumes rose 21.4% to KES 35.86 trillion ($250 billion) and 33.5% to KES 21.03 billion ($146 million), respectively. Charges for M-PESA to financial institution transactions resumed on Jan 1, 2023, with decreased tariffs. M-PESA brokers, the place customers go to withdraw or deposit money, grew 0.1% to over 262,000.
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