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The telco, Safaricom, has announced that starting from Tuesday, August 15th, M-Pesa users will have the ability to make transactions up to KSh 500,000 per day due to the increased account limit.
Initially, the mobile money account limits for M-Pesa users were capped at a maximum of KSh 300,000 per day, which limited users who desired to transact with higher amounts per day.
This new development was approved by the Central Bank of Kenya and aims to provide customers and businesses with more convenience and safety when transacting.
Safaricom CEO, Peter Ndegwa, stated that the new limits were approved by the Central Bank of Kenya, which will boost business transactions.
– Safaricom confirmed in a public statement that M-Pesa account limits have been increased to KSh 500,000.
– The current limit per transaction remains at KSh 150,000, but customers are now free to make multiple transactions that add up to KSh 500,000.
The decision to increase the account limits received mixed reactions from Kenyans, with some praising the move for enabling them to make more transactions per day, while others suggested that M-Pesa should be included as a payment system for employers to pay their employees.
Convenience and Accessibility:
– M-Pesa provides a convenient and accessible platform for employees to receive their salaries directly into their mobile wallets.
– Employees can easily access their funds and make transactions anytime and anywhere using their mobile phones.
– It eliminates the need for physical cash or checks, saving time and effort for both employers and employees.
Efficiency and Cost Savings:
– M-Pesa offers a fast and efficient way to process salary payments.
– Employers can make bulk payments to multiple employees simultaneously, reducing administrative burden and paperwork.
– It eliminates the need for manual reconciliation and reduces the chances of errors or discrepancies in salary payments.
– Using M-Pesa for salary payments can be cost-effective for both employers and employees, as it eliminates the need for physical checks, bank transfers, or cash handling fees.
– Employers can save on administrative costs associated with printing and distributing physical checks.
Security:
– M-Pesa transactions are secured with encrypted technology, reducing the risk of fraud or theft associated with handling large amounts of cash.
– Employees can have peace of mind knowing that their salaries are safely stored in their mobile wallets and can be accessed securely.
Financial Inclusivity:
– The majority of Kenyans are registered for M-Pesa, making it easily accessible for most people.
– This enhances financial inclusivity by providing a widely available platform for salary payments.
Using M-Pesa for salary payments brings several benefits, including convenience, efficiency, cost savings, security, and inclusivity. It offers a convenient and accessible platform for employees to receive their salaries directly into their mobile wallets, eliminates the need for physical cash or checks, reduces administrative burdens and paperwork for employers, and ensures secure transactions.
