M-Pesa, a leading mobile money transfer service in the country, offers a convenient way for businesses and customers to transact. Its Paybill service is widely used for collecting payments from customers, providing a seamless integration between businesses and their clientele.
Paybill charges vary depending on the tariff that the business uses, thus it’s important for businesses and customers to understand these costs.
This guide breaks down the Paybill charges according to the 3 tariffs:
- Mgao Tariff
- Business Bouquet Tariff
- Customer Bouquet Tariff.
1) Mgao Tariff: Balanced cost sharing
The Mgao Tariff is a balanced approach where transaction charges are split between the customer and the business. This model is designed to distribute the financial impact of transaction fees.
Transaction charges:
Transaction Range | Customer Pays | Business Pays | Total |
---|---|---|---|
0 – 49 | 0 | 0 | 0 |
50 – 100 | 0 | 0 | 0 |
101 – 500 | 5 | 0 | 5 |
501 – 1,000 | 10 | 0 | 10 |
1,001 – 1,500 | 10 | 5 | 15 |
1,501 – 2,500 | 13 | 7 | 20 |
2,501 – 3,500 | 16 | 9 | 25 |
3,501 – 5,000 | 16 | 18 | 34 |
5,001 – 7,500 | 17 | 25 | 42 |
7,501 – 10,000 | 18 | 30 | 48 |
10,001 – 15,000 | 18 | 39 | 57 |
15,001 – 20,000 | 19 | 43 | 62 |
20,001 – 25,000 | 20 | 47 | 67 |
25,001 – 30,000 | 20 | 52 | 72 |
30,001 – 35,000 | 21 | 62 | 83 |
35,001 – 40,000 | 23 | 76 | 99 |
40,001 – 45,000 | 23 | 80 | 103 |
45,001 – 50,000 | 24 | 84 | 108 |
50,001 – 70,000 | 24 | 84 | 108 |
70,001 – 250,000 | 24 | 84 | 108 |
2) Business Bouquet Tariff: Zero Cost to Businesses
The Business Bouquet Tariff is tailored for businesses looking to avoid transaction charges, placing the entire cost burden on the customer. This option is particularly attractive for businesses prioritizing operational cost savings.
Business Bouquet Paybill charges:
Transaction Range | Customer Pays |
---|---|
0 – 49 | 0 |
50 – 100 | 0 |
101 – 500 | 5 |
501 – 1,000 | 10 |
1,001 – 1,500 | 15 |
1,501 – 2,500 | 20 |
2,501 – 3,500 | 25 |
3,501 – 5,000 | 34 |
5,001 – 7,500 | 42 |
7,501 – 10,000 | 48 |
10,001 – 15,000 | 57 |
15,001 – 20,000 | 62 |
20,001 – 25,000 | 67 |
25,001 – 30,000 | 72 |
30,001 – 35,000 | 83 |
35,001 – 40,000 | 99 |
40,001 – 45,000 | 103 |
45,001 – 50,000 | 108 |
50,001 – 70,000 | 108 |
70,001 – 250,000 | 108 |
3) Customer Bouquet Tariff
In stark contrast, the Customer Bouquet Tariff ensures that customers are not charged for transactions, with businesses covering all associated costs.
This tariff is aimed at enhancing customer satisfaction by offering free transactions.
Transaction charges:
Transaction Range | Business Pays |
---|---|
0 – 49 | 0 |
50 – 100 | 0 |
101 – 500 | 5 |
501 – 1,000 | 10 |
1,001 – 1,500 | 15 |
1,501 – 2,500 | 20 |
2,501 – 3,500 | 25 |
3,501 – 5,000 | 34 |
5,001 – 7,500 | 42 |
7,501 – 10,000 | 48 |
10,001 – 15,000 | 57 |
15,001 – 20,000 | 62 |
20,001 – 25,000 | 67 |
25,001 – 30,000 | 72 |
30,001 – 35,000 | 83 |
35,001 – 40,000 | 99 |
40,001 – 45,000 | 103 |
45,001 – 50,000 | 108 |
50,001 – 70,000 | 108 |
70,001 – 250,000 | 108 |
Conclusion
The selection of an M-Pesa Paybill tariff should align with the strategic financial goals of businesses and the convenience of customers.
Whether it’s balancing transaction costs, minimizing business expenses, or ensuring customer satisfaction, understanding these tariffs allows for informed decision-making. Each tariff offers distinct benefits, catering to the diverse needs of the marketplace.