Today in this article we shall share with you how to start Mpesa Business in Kenya.
When the mobile money transfer of money was introduced in 2007 by Safaricom, people started the lucrative MPesa business in Kenya.
The Mpesa businesses are easy to start and operate.
The Mpesa business includes registering new mpesa users, depositing cash into mpesa accounts, and facilitating cash withdrawal.
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Mpesa Business Ideas In Kenya
Mpesa has different categories of Mpesa, which include the mpesa agent and the mpesa sub-agent.
An agent is responsible for recruiting subagents, and they are paid directly by safari, while the mpesa subagents work under a licensed Safaricom agent.
Things You Need To Become Mpesa Agent In Kenya
Below are the requirements to become Mpesa Agent in Kenya:
1. The mpesa business should be registered under a registered limited company.
2.The initial deposit float is Ksh 100,000
3. Maintain the amount in all outlets
4. Operate the Mpesa shops in different counties
5. Have a Safaricom business permit
6. Fill in the Mpesa Agent form and apply.
7.Once approved, you will be given a till number to use
Requirements To Become An Mpesa Sub-agent
A mpesa subagent is supposed to work under a Mpesa Super-agent. But the Mpesa number must be is registered directly under Safaricom.
Below are the things you need to become Mpesa Sub-agent:
- Float of Ksh 30,000
- Must carry out Mpesa transactions
- Sub-agent are required to have store management till to manage float
How To Make Your Mpesa Business Successful
To make your Mpesa business successful in Kenya, here are the things you must do:
1. Open in a place where there are not much Mpesa agents.
2. Ensure proper security when dealing with customers. Most robbers pos as legit customers to target mpesa business.
3. Make sure you have a float in your business. It would be best if you had enough money to sustain your customers as much as possible.
4. Strictly follow the rules and regulations of Safaricom
5. Deliver a unique business strategy compared to your competitors.
How Much Does It Cost To Start A Mpesa Business
For a mpesa agent, the minimum float is Ksh 100,000. For a mpesa sub-agent minimum float is Ksh 30,000
Is Mpesa Business Ideas In Kenya Profitable
Mpesa is one of the most profitable small businesses in Kenya.
You can earn huge sums of profit depending on the number of transactions you carry out each day.
Because many people withdraw and send money every day, the market is always moving.
Challenges You May Face With Mpesa Business In Kenya
Below are some challenges you may face in Mpesa Business in Kenya:
- Fraud – most people have come disguised as Safaricom representatives. They tend to rob mpesa people of lots of money. The mpesa agents and subagents should be careful not to transfer money to the wrong people.
- Competition – there are so many mpesa shops and agents nationwide. When you consider opening a mpesa shop, locate your business where there is human traffic.
- Security – Armed robbers, can harass you if you are located in a place where the security is shaky. Security should be your top priority.
- Strict terms of operation – as a mpesa agent or a mpesa subagent, you must strictly adhere to Safaricom rules and regulations. Your line is blocked if you do not adhere to their rules.
That is all you need to know about how to start Mpesa Business in Kenya.