Safaricom slashes Paybill fees by more than half
Safaricom has trimmed paybill charges in half in an effort to support mobile money payments between customers and businesses.
The move, which will take effect starting January 1, 2023 is set to signal the return to lower charges on mobile wallet to bank account transfer costs.
In the new changes, bank-to-M-PESA charges have been reduced by an average of 61 percent.
Additionally, M-PESA to bank charges have been reduced by an average of 47 percent and is applicable to customers making M-PESA to bank transactions. Transactions below Kes100 remain zero rated.
The reduced M-PESA to bank tariff will also apply to all M-PESA Paybill payments that customers use for utilities such as electricity, hospital bills, schools, government payments etc to ensure affordability.
“In our role to continue supporting the economy and stimulating growth, we have taken the initiative to significantly reduce our paybill and business-to-customer tariffs. This move reaffirms our commitment to support all our customers and enable them to cost-effectively get along with their lives, especially at this time when most Kenyans are experiencing hard economic times,” said Safaricom CEO Peter Ndegwa.
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The revised tariffs have been structured to ensure alignment with the Central Bank of Kenya (CBK) pricing principles on customer centricity; transparency and disclosure; fairness and equity; choice and competition as well as affordability.
Early this month, the CBK announced the reintroduction of fees on transactions between mobile money and bank accounts.
“The revised maximum charges for transfers from bank accounts to mobile money wallets will be reduced by on average up to 61 percent, and mobile money wallet to bank account by on average up to 47 percent,” CBK directed.
At the height of Covid-19 spread in March 2020, banks announced a waiver of transaction costs from banks to mobile money wallets and vice versa as part of the emergency measures to facilitate the use of mobile money during the pandemic.
