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Wednesday, October 21, 2020

How to become an MPesa agent (Updated Procedure)

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How to become an MPesa agent: The M-Pesa business is one of the most popular in Kenya but many people don’t know how to become an M-Pesa agent. Let us take a look at how you can start this business and the requirements needed.

How to become an M-Pesa agent: Requirements

To become an M-pesa Agent, Safaricom requirements all prospective agent must be registered as a LIMITED company or equivalent with at least 3 outlets ready to offer M‐PESA under the company names.

The company MUST have traded for a minimum period of 6 months.

The proposed outlets shall be audited prior to commencement of business and only applications for outlets in opportunity areas will be considered.

How to make money in mitumba business in Kenya

How to become an M-Pesa agent: The float

The biggest challenges most entrepreneurs face while starting their Mpesa business is the minimum investment required to operate that has been set by Safaricom.

According to Safaricom, an agent will be expected to invest the following amounts:
1). Kshs 100,000 per outlet for float.

2). Kshs 100,000 for SIMEX (SIM replacement cards).

3).Kshs 100,000 per outlet for additional outlets for float.

How to become an M-Pesa agent: Tasks

Safaricom recommends that the agent should preferably employ competent staff with minimum of KCSE to handle the service. Some of the daily tasks that agents will be required to perform are as follows:

Registration of M-PESA Customers

Depositing cash into registered customers M-PESA accounts

Processing cash withdrawals for registered M-PESA customers

Processing cash withdrawals for non-registered M-PESA customers

Customer Education

Compliance with Safaricom AML & KYC Policy

Compliance with Safaricom business practices

Branding of their outlets as per provided guidelines

How to become an M-Pesa agent: Sub dealer

As a sub-dealer, you require the help of an agent.

An agent helps you in acquiring an M-Pesa line and also ensures that you fulfil all the requirements needed before you sign a contract to start the business.

Besides this Safaricom also requires the following from the Agent:

1.Company Registration
2.At least 3 outlets ready to offer M-Pesa services
3. At least Sh 300,000 made available for each outlet for float and sim replacement cards
4. Be in trading for at least 6 months
5.Have qualified staff to run the outlets
6.Have an ETR Machine
7. Have a Computer
8. Have a Printer
9. Have internet connectivity, among other technical requirements.

How to become an M-Pesa agent: Volumes

The amount you can make in the M-Pesa business can be as low as KSh4 per transaction, this therefore means that your business must be able to attract many people in order to make you substantial money.

This also means that you should set up your shop in a busy area where more people can visit your shop and access M-Pesa services.

Advantages of aggregated M-Pesa lines?

Higher Commissions- with aggregated mpesa lines you will get the recommended Safaricom split commissions percentage i.e. 80% for you and 20% for your principal. This is by far the best rate because non aggregated lines attract up to 40% and in some occasions you don’t even get to know what you earned fo the whole month meaning unscrupulous super dealers can take even more without your knowledge if you don’t follow up for summarized till/agent line performance report.

Direct payment of commission by Safaricom-You don’t have to wait on on your principal to reimburse commissions, you get it directly from Safaricom into your working account by 1st of a new month.
No delays in remittance of commissions – All your commissions for your till accrued in the past month are summed up by 0059hours before beginning f new month and yes ,you have your commission by 1 of a new month unlike non aggregated lines where principals can take time to send you your commissions.

Faster conflict resolutions- in some occasions their might be some issues with your principal or vice versa e.g. some uncouth principals might feel their leased lines aren’t performing well(getting less commissions than anticipated) and might want to reclaim them without your approval,. Such scenarios are easily resolved if you are using aggregated line unlike non aggregated when the arrangement is informal.

Float Management- Aggregated lines come with a float management feature which enables you to easily manage your line/till e.g. by giving you an option to get cash from super agents(banks, certified super agents Mpesa outlets) by exchanging excess e-float with cash and vice versa. This is extremely economical for any mpesa agent because it gives you a very cheap way to balance and manage money in your till. How to become an MPesa agent.

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