NCBA Loop has officially reinstated M-Pesa to Loop charges. According to Loop, the charges were reintroduced following “a business decision”. For a while now, Loop Customers have enjoyed depositing funds to their loop account for free. However, they will now have to pay M-Pesa PayBill charges as set by Safaricom.
Take note the charges are not levied by Loop, they are levied by M-Pesa. However, Loop to M-Pesa transactions will still attract a fee. You may have a view of the Loop to M-Pesa tariffs here.
This means that users will suffer costs both ways when transacting on the platform. The business decision will definitely ire customers who have become accustomed to the free rate. Loop Customers usually use the PayBill number: 714777 for to deposit funds.
M-Pesa To Loop Charges May Reduce Transactions
According to a recent survey, reinstatement of transaction fees after the COVID-19 freeze has led to a decreased use of PayBill for transactions. As such, it is expected that prudent customers will transact less from M-Pesa to the NCBA.
Currently, I&M Bank stands out in the local market due to having dropped all bank-to-mobile money charges. This, by itself, is going to attract thousands of customers who just want to share money with their friends and family without incurring exorbitant charges
Additionally, Loop’s drastic decision went unannounced and left customers in shock after reviewing their recent transaction statements.
