[UPDATED] M-PESA Charges 2023: A Complete Guide to Understanding the Transaction Fees

 [UPDATED] M-PESA Charges 2023: A Complete Guide to Understanding the Transaction Fees

As mobile money continues to revolutionize the financial industry, M-PESA has become a popular choice for millions of people worldwide. However, as with any financial service, understanding the fees associated with M-PESA transactions is crucial to avoid any unexpected charges. In this article, we'll take a deep dive into M-PESA charges, including the various types of transaction fees and how they are calculated.

Table of Contents

1. What is M-PESA?
2. Types of M-PESA Transactions
3. M-PESA Charges: Sending Money
4. M-PESA Charges: Withdrawing Money
5. M-PESA Charges: Lipa Na M-PESA
6. Other M-PESA Charges
7. How to Check M-PESA Charges
8. Tips to Reduce M-PESA Charges
9. Frequently Asked Questions
10. Conclusion

What is M-PESA?

M-PESA is a mobile money transfer service that was first launched in Kenya in 2007 by Safaricom, a leading telecommunications company. It allows users to send and receive money, pay bills, and buy goods and services using their mobile phones. M-PESA has since expanded to several countries in Africa and beyond, including Tanzania, Mozambique, Egypt, India, and Romania.

Types of M-PESA Transactions

M-PESA transactions can be broadly classified into three categories:

1. Sending money to other M-PESA users
2. Withdrawing money from M-PESA agents or ATMs
3. Paying for goods and services using Lipa Na M-PESA

Each of these transaction types has its own charges, which we will explore in detail below.

M-PESA Charges 2023: Sending Money

When sending money to other M-PESA users, the charges depend on the amount being sent and the transaction method. The table below summarizes the M-PESA tariffs for sending money.

Transaction Range (KES)	Charges (KES)
0 - 49,999	Free
50,000 - 99,999	Free
100,000 - 199,999	Free
200,000 - 299,999	Free
300,000 - 499,999	Free
500,000 - 999,999	Free
1,000,000 - 1,999,999	Free
2,000,000 - 4,999,999	Free
5,000,000 - 9,999,999	Free
10,000,000+	Free

As seen in the table, sending money to other M-PESA users is free for amounts up to KES 100. For amounts above KES 100, the charges increase with the transaction amount.

It's worth noting that there are different transaction methods, which may attract different charges. For example, sending money via the M-PESA app or online portal may attract higher charges compared to using USSD codes.

M-PESA Charges: Withdrawing Money

When withdrawing money from M-PESA agents or ATMs, the charges also depend on the amount being withdrawn. The table below summarizes the M-PESA tariffs for withdrawing money.

 

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

 

As seen in the table, withdrawing smaller amounts attracts lower charges compared to larger amounts. For withdrawals of KES 1,000 and above, the charges are fixed at KES 28.

M-PESA Charges 2023: Lipa Na M-PESA

Lipa Na M-PESA allows users to pay for goods and services using their mobile phones. The charges for Lipa Na M-PESA transactions vary depending on the merchant and the transaction amount. The table below summarizes the M-PESA tariffs for Lipa Na M-PESA.

Transaction Range (KES)	Charges (KES)
0 - 49,999	Free
50,000 - 99,999	Free
100,000 - 199,999	Free
200,000 - 299,999	Free
300,000 - 499,999	Free
500,000 - 999,999	Free
1,000,000 - 1,999,999	Free
2,000,000 - 4,999,999	Free
5,000,000 - 9,999,999	Free
10,000,000+	Free

As seen in the table, Lipa Na M-PESA transactions of KES 2,500 and below are free. For transactions above KES 2,500, charges are applied depending on the transaction amount.

Other M-PESA Charges 2023

Apart from the charges for sending, withdrawing, and paying for goods and services, M-PESA also has other charges, such as:

• Account balance inquiry: KES 1
• Reversal of erroneous transactions: KES 22
• Change of M-PESA PIN: Free
• Bill payments: Free for select billers

It's important to note that these charges may vary depending on the M-PESA service provider and the country.

How to Check M-PESA Charges in 2023

To check the charges for a particular M-PESA transaction, you can use the M-PESA charges calculator. The calculator is available on the Safaricom website and can be accessed by going to Safaricom website.

Tips to Reduce M-PESA Charges in 2023

To minimize M-PESA charges, consider the following tips:

1. Use the right transaction method: Different transaction methods attract different charges. For example, using USSD codes may be cheaper than using the M-PESA app or online portal.
2. Consolidate your transactions: Sending larger amounts in a single transaction attracts lower charges compared to sending multiple smaller transactions

3. Avoid withdrawing small amounts frequently: As seen in the M-PESA charges table, withdrawing smaller amounts frequently attracts higher charges compared to withdrawing larger amounts.
4. Utilize free services: M-PESA offers free services for certain transactions such as Lipa Na M-PESA payments and select bill payments.
5. Know the charges beforehand: Before making an M-PESA transaction, always check the charges beforehand to avoid any surprises.

By following these tips, you can reduce your M-PESA charges and save money.

Conclusion

M-PESA charges are an important factor to consider when using the mobile money service. Understanding the charges for sending, withdrawing, and paying for goods and services can help you make informed decisions and avoid unnecessary costs. By utilizing the tips mentioned above, you can minimize your M-PESA charges and enjoy the convenience of mobile money.