New M-Pesa Paybill Charges 2024 & Tips for low Transaction Costs

Explore the most up-to-date 'M-Pesa Paybill Charges 2024' in Kenya with our comprehensive guide. Discover the latest tariffs, cost-saving tips, and smart transaction strategies to optimize your M-Pesa usage. Stay ahead in managing your finances with our expert insights into the 2024 M-Pesa Paybill fees.

Joseph Richard

Feb 12, 2024 - 12:25

New M-Pesa Paybill Charges 2024 & Tips for low Transaction Costs

M-Pesa Paybill Charges 2023: Latest Paybill Charges & Tips for low Transaction Costs

M-Pesa's Paybill service, operated by Safaricom, is more than just a feature; it's a lifeline connecting individuals and businesses, facilitating seamless transactions nationwide. Whether paying utility bills, school fees, or transferring money to other networks, Paybill has become synonymous with convenience and efficiency. The year 2024 brings with it new updates and changes to the Paybill charges, reflecting Safaricom's commitment to adapting to its users' evolving needs and financial landscapes.

This guide delves deep into the structure of Paybill charges for 2024, offering a comprehensive understanding of individual users and businesses. From the primary usage of the service to the latest tariff changes, we aim to provide you with all the information needed to navigate the world of M-Pesa Paybill with confidence and ease. Whether you're a longtime user or new to the service, this guide will equip you with the knowledge to make the most of M-Pesa's Paybill in 2024

Overview of M-Pesa Paybill Service

What is M-Pesa Paybill?

M-Pesa's Paybill is a service at the forefront of financial convenience in Kenya, revolutionizing how payments are made and received. It's a unique feature offered by Safaricom, Kenya's leading mobile network operator, under its widely popular mobile money platform, M-Pesa. Paybill allows users to make payments to various entities, including businesses, utility companies, and educational institutions, directly from their M-Pesa accounts. This service has become a staple in the daily financial activities of millions in Kenya, offering a secure, fast, and easy way to manage bills and other payments.

How Does Paybill Work?

The process is straightforward: users enter a business's unique Paybill number and the amount they wish to pay, and the transaction is completed almost instantly. This eliminates the need for physical cash handling or bank visits, encapsulating convenience in the palm of your hand.

The Impact of Paybill in Everyday Transactions

Facilitating Business Transactions

For businesses, Paybill is more than a payment gateway; it's a tool that enhances customer experience and streamlines revenue collection. By offering an easy-to-use and reliable payment option, businesses can efficiently manage transactions, reduce the risks associated with cash handling, and expand their customer reach. Paybill caters to diverse business needs, from small-scale vendors to large corporations.

Utility and Bill Payments

In the realm of personal finance, Paybill simplifies the way individuals manage their bills. Whether it's electricity, water, or internet services, users can effortlessly settle their monthly dues without queuing. This convenience has saved time and improved the punctuality of payments, benefiting both consumers and service providers.

Educational Fee Payments

Another significant application of Paybill is in the education sector. Parents and guardians can pay school fees directly through their phones, ensuring their children's education is uninterrupted. This system has also been a boon for educational institutions, streamlining fee collection processes and reducing administrative burdens.

Healthcare Payments

The healthcare sector has also embraced Paybill, with hospitals and clinics allowing patients to pay for medical services via this method. This has been particularly beneficial in emergencies, where quick and hassle-free transactions are crucial.

Charity and Fundraising

Paybill's impact extends to philanthropy as well. Charitable organizations and individuals running fundraisers find it a valuable tool to collect donations, making it easier for well-wishers to contribute to causes they care about.

The Convenience Factor

Above all, the Paybill service epitomizes convenience. It's accessible 24/7, from anywhere, and requires just a mobile phone. This level of accessibility has made it an indispensable part of daily life in Kenya.

M-Pesa Paybill Charges for 2024

Detailed Breakdown of Paybill Charges

In 2024, Safaricom updated its Paybill charges, offering a more cost-effective structure for its users. The charges are segmented into three distinct tariffs: Mgao tariff, Business bouquet tariff, and Customer bouquet tariff, each tailored to cater to different user needs.

Mgao Tariff M-Pesa Transaction Charges

Under the Mgao tariff, both the business and the customer share the transaction cost. This tariff is particularly beneficial for small and medium-sized businesses that require a more balanced approach to transaction costs.

Bands (KES)	Charges on the Business	Charges on the Customer	Total Charges (KES)
1 - 49	0	0	0
50 - 100	0	0	0
101 - 500	0	4	4
501 - 1,000	0	9	9
1,001 - 1,500	5	9	14
1,501 - 2,500	7	12	19
2,501 - 3,500	9	15	24
3,501 - 5,000	17	16	33
5,001 - 7,500	24	16	40
5,001 - 7,500	29	17	46
7,501 - 10,000	38	17	55
10,001 - 15,000	42	18	60
15,001 - 20,000	46	19	65
20,001 - 25,000	51	19	70
25,001 - 30,000	60	20	80
30,001 - 35,000	74	22	96
35,001 - 40,000	78	22	100
40,001 - 45,000	82	23	105
45,001 - 50,000	82	23	105
50,001 - 70,000	82	23	105

Note

- Transactions ranging from KES 1 to KES 49 are free of charge.
- For transactions between KES 50 and KES 500, charges vary from KES 0 to KES 4.
- As the transaction amount increases, the maximum charge for the customer is KES 23. At the same time, for the business, it's KES 82 for transactions up to KES 150,000.

Business Bouquet Tariff (Business to Customer Tariff) Charges

This tariff is designed where the business assumes the entire transaction cost. It's an attractive option for businesses looking to offer added convenience to their customers by absorbing the transaction fees.

Bands (KES)	Charges on the Business	Total Charges (KES)
1 - 49	0	0
50 - 100	0	0
101 - 500	4	4
501 - 1,000	4	4
1,001 - 1,500	4	4
1,501 - 2,500	8	8
2,501 - 3,500	8	8
3,501 - 5,000	8	8
5,001 - 7,500	10	10
7,501 - 10,000	10	10
10,001 - 15,000	10	10
15,001 - 20,000	10	10
20,001 - 25,000	12	12
25,001 - 30,000	12	12
30,001 - 35,000	12	12
35,001 - 40,000	12	12
40,001 - 45,000	12	12
45,001 - 50,000	12	12
50,001 - 70,000	12	12
70,001 - 150,000	12	12

Note:

- No charges for transactions up to KES 100.
- A flat rate of KES 12 is charged to the business for transactions between KES 101 and KES 150,000.

Customer Bouquet Tariff (Customer to Business Tariff)

Similar to the Business bouquet tariff, the business pays all the fees, and the customer incurs no charges. It is especially advantageous for businesses to prioritize customer experience by offering fee-free transactions.

Bands (KES) and Charges:

Transactions up to KES 100 are free.
Charges for the business range from KES 4 to KES 105 for transactions between KES 101 and KES 150,000.

Changes in Paybill Charges for 2024

2024 marks a significant reduction in Paybill charges, a move aimed at making mobile transactions more affordable and accessible. Safaricom has announced a reduction in charges by an average of 47%, a relief for customers and businesses amid the increasing demand for mobile payment services.

Examples of Reduced Charges:

Transactions between KES 100 and KES 500 now cost KES 4, down from KES 23.
For higher amounts, like transactions between KES 50,000 and KES 150,000, the charge is KES 105, reduced from KES 210.
Similarly, businesses are charged KES 5 for transactions between KES 100 and KES 1,500, a significant decrease from the previous rate.

These changes will encourage more users to leverage the Paybill service, enhancing digital financial inclusion. With reduced costs, businesses might also find it more feasible to transition from cash to digital transactions.

Additional M-Pesa Charges and Features

Other M-Pesa Transaction Charges in 2024

While Paybill charges are a significant aspect of M-Pesa's transactional costs, it's essential to consider other charges that users might incur in 2024. Understanding these costs helps in better financial planning and utilization of M-Pesa services.

M-Pesa Withdrawal Charges

Withdrawing cash from M-Pesa is a typical transaction for many users. In 2024, Safaricom has structured these charges based on the amount being withdrawn:

Withdrawal Amount	MPESA Charges (KES)
From Ksh 1 to 49	Ksh 0
From Ksh 50 to 100	Ksh 10
From Ksh 101 to 500	Ksh 27
From Ksh 501 to 1,000	Ksh 28
From Ksh 1,001 to 1,500	Ksh 28
From Ksh 1,501 to 2,500	Ksh 28
From Ksh 2,501 to 3,500	Ksh 50
From Ksh 3,501 to 5,000	Ksh 67
From Ksh 5,001 to 7,500	Ksh 84
From Ksh 7,501 to 10,000	Ksh 112
From Ksh 10,001 to 15,000	Ksh 162
From Ksh 15,001 to 20,000	Ksh 180
From Ksh 20,001 to 35,000	Ksh 191
From Ksh 35,001 to 50,000	Ksh 270
From Ksh 50,001 to 150,000	Ksh 300

Note:

Charges for Withdrawing from an Agent:

Transactions up to KES 49 are free.
Charges progressively increase from KES 10 for transactions between KES 50 and KES 100 and up to KES 300 for transactions between KES 50,001 and KES 150,000.

ATM Withdrawal Charges:

For ATM withdrawals, charges start at KES 34 for amounts ranging from KES 200 to KES 2,500 and go up to KES 197 for amounts between KES 10,001 and KES 20,000.

Charges for Other Transactions

M-Pesa also incurs charges for various other transactions:

Transferring Money to Safaricom and Non-Safaricom Users:

Transferring money to other Safaricom users is free for amounts up to KES 49, with charges incrementally rising for higher amounts.
For transfers to non-Safaricom accounts, charges start from KES 45 for amounts between KES 101 and KES 500, increasing with the amount transferred.

M-Pesa Balance Inquiry and PIN Changes:

It's free to check your M-Pesa balance or change your PIN, ensuring users can manage their accounts without additional costs.

M-Pesa Global and Its Relevance

M-Pesa Global is a feature that extends the reach of M-Pesa beyond Kenya's borders, allowing users to send and receive money globally.

M-Pesa Global facilitates international transactions, enabling users to send funds to countries like Rwanda, Tanzania, and Uganda and even to bank accounts in regions like the US, UK, Europe, and UAE.
This service is particularly beneficial for users engaged in international trade or those with family and friends abroad.

Charges and Limits for Global Transactions

While M-Pesa Global transactions are free of charge, they are subject to prevailing Forex Rates, which should be considered when sending or receiving money internationally.

The minimum amount for an international transaction is KES 101, and the maximum is KES 70,000, accommodating a wide range of transaction needs.

Conclusion

The future of M-Pesa and mobile money in Kenya is not just about technology but how it transforms lives, businesses, and communities. As we look ahead, the potential for growth, innovation, and positive impact remains vast, making M-Pesa an exciting and integral part of Kenya's journey towards a more connected and financially inclusive future.

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Joseph Richard Joseph Richard, a leading contributor to sledge.co.ke, uses his decade-long expertise in finance, business, and technology to offer clear, reliable guides and analyses. His work aids Kenyans in making informed financial and business decisions, earning him a reputation as a trusted industry authority.