Safaricom has today increased M-PESA transactions limit to KSh. 250,000 for each transaction. This announcement came after the Mobile money platform received approval from the Central Bank of Kenya (CBK).
As a result, M-Pesa users now have another transaction band of Ksh. 151,000 to Ksh. 250,000. The new band is available for Send Money, Lipa Na M-PESA Buy Goods, PayBill and all other M-Pesa transactions.
Recently, the CBK approved the increase in daily transaction limit to KES 500,000 per day from the previous KES 300,000.
As for charges, the current maximum transaction fees will apply across the new bands including Ksh. 108 per transaction for Send Money. Take note, M-Pesa recently adjusted its transactions fees for all bands. This was due to the enactment of the Finance Bill.
New Transaction Limit Welcomed
Airtel Money, the key competitor in the mobile money space already increased the transaction limit.
However, the news from Safaricom will be most welcomed as M-Pesa accounts for about 96% of mobile money transactions in Kenya. In Kenya, more than $4 billion (KES 587 billion) is deposited every month into bank accounts through M-PESA. Extending the transaction limit will definitely make these processes easier for M-Pesa users.
As recently reported, M-Pesa is set to become the first Mobile money platform in the world to introduce standing orders. Hence, payment of recurring bills will further be enhanced when the limit is substantial. For example, one can envision that businesses will find it easier to automate payments to suppliers.
Definitely, mobile money is now a feature of everyone including Small and Medium Enterprises (SMEs). With Pochi La Biashara, Buy Goods and PayBill the go to modes of payment, the announcement is definitely welcomed.