Before Safaricom’s announcement Friday November 4, 2016, M-Pesa customers had to incur charges while sending and buying goods worth Kshs. 100 and less. Although it is free to send money to unregistered Safaricom users from Kshs. 10 to 100, their number is insignificant compared to their registered counterparts. As such, the telco giant had to forego the 500 million it has been raking per year for transactions involving Kshs. 100 and below with the introduction of M-PESA Kadogo.
This new service, which comes a few months after Safaricom launched Little, will see customers who initially incurred Kshs. 1 and Kshs. 3 when transferring between Kshs. 10 to 49 and Kshs. 50 to 100, respectively, pay nothing for similar transactions. Although the initial charges were notably small, they were a big deal to small scale vendors, Boda Boda operators, and their respective customers.
Customers Could Take Advantage of M-PESA Kadogo
In addition to enjoying FREE transactions under the new M-PESA Kadogo services, customers can also Buy Goods and Services up to Kshs. 100 without paying any charges. With this new Safaricom service, some customers may see the opportunity to make numerous transactions involving sending money. However, it is a matter of time before the company announces an official number of maximum sending transactions of less than Kshs. 100.
Having rolled out the M-PESA Kadogo transactions, it seems Safaricom is already on course with its plan to expand its M-PESA platform and related services. For instance, a Lipa Na M-PESA card may be the next addition to your wallet in the next few months. The company already had a pilot for the card by having its employees use it to pay for goods.
Despite the scrapped sending charges that come with the MPESA Kadogo platform, the withdrawal charges remain the same. Withdrawals up to Kshs. 49 are FREE but the Kshs. 10 charge for withdrawing between Kshs. 50 to 100 still holds.
Here is the Safaricom M-PESA Kadogo ad video.