SMEs allowed to remit money directly from M-pesa accounts under new service

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Small and Medium Enterprises(SMEs) are now set to enjoy direct money remmitance to suppliers from their M-pesa accounts. The move now allows for faster transactions with merchants now able to use the Lipa na M-pesa account feature for various payments. This includes business such as bars, supermarkets and petrol stations being able to directly pay employees, suppliers and fees levies.

Before, more than 170,000 businesses with M-pesa accounts had to content working with respective bank accounts to access M-pesa funds.

“Business owners with a business paybill can now send money to other M-Pesa customers to pay wages, pay supplies and make payments to other businesses all through the app,” said Safaricom’s CEO, Peter Ndegwa.

The statement on Thursday followed the launche of the “M-Pesa for Business Smartphone app” for merchant transactions. With this new app, traders can now get real-time data with a dashboard to manage and view transactions. The mode will see businesses or counter effectively manage their till numbers thus improving decision making.

“Small and medium businesses will now have a technology that will help them grow,” adds the CEO.

As a convenience with the new service, Safaricom also intends to charge merchants the normal M-pesa transfer fees. 


About Author

Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: Contact: +254 780216631

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