Safaricom cuts fees on low and medium value M-PESA transfers
In line with its strategic objective of transforming lives through financial inclusion, leading integrated communications service provider Safaricom has announced a targeted reduction of transaction fees levied by the operator on its most popular person to person M-PESA transaction bands.
The new tariffs, which are set to take effect from Thursday 21st August, 2014, will see transaction fees reduced by up to sixty seven (67%) percent in the low and medium tiered bands which include the transfer of amounts ranging between Kshs 10- to Ksh 1,500. While making the tariff revision announcement, the operator also signaled that it had rationalized the tariffs for sending higher amounts exceeding Kshs. 1,501 to be an average of zero point eight (0.8%) percent of the transaction value.
“We have spent a considerable amount of time analyzing M-PESA usage trends and we have established that over 65% of all M-PESA person to person transactions are within the KSh 10 – Ksh 1,500 band. It is our belief that by lowering the cost of these transactions we will provide an increased number of Kenyans with affordable access to basic financial services,” said Safaricom’s Chief Executive Officer, Bob Collymore.
He added, “Our financial services portfolio now contributes close to 20% of our overall revenues and pushing through a tariff reduction of this magnitude is an expression of confidence in our longer term strategy to drive the growth of a cash-lite economy that delivers financial inclusion to millions of Kenyans through the convenience and affordability of our financial products.”
Collymore explained that withdrawal tariffs as well as the transaction fees for Lipa Na M-PESA and indeed all other tariffs, will remain unchanged, following the tariff review announced today.