M-Pesa
M-Pesa is a Kenyan based money-transfer and mobile payment system. Users can store and send funds to friends and family as well as businesses on the network. The international company was set up by Vodafone with the goal of improving financial inclusion in Kenya and now has a strong customer base across Africa.
This review will cover the meaning of M-Pesa, its history and how it works. It will also investigate typical transaction speeds, new tariffs, plus withdrawal charges. Finally, we will show you how to log in and start making deposits and withdrawals at trading brokers.
Brokers in United States with M-Pesa
How M-Pesa Works
M-Pesa was set up in 2007 and has headquarters in Nairobi, Kenya. The launch was led by Kenya’s biggest mobile phone operator (Safaricom) and Vodafone (Vodacom). The goal of the owner was to provide payment services to users who do not have access to a bank or cannot afford typical minimum deposit requirements.
As the first mobile transfer service to be launched in Kenya, M-Pesa cornered the market. Researchers are even conducting a case study to determine whether its dominant market share was the healthiest solution.
Registration is online and open to citizens in many countries outside of Kenya, including Ghana, Egypt and Tanzania. The firm has experienced significant growth with number of active users topping 40 million alongside more than 500,000 M-Pesa agents. By the end of the financial year in March 2021, the company had generated impressive revenues of over 765 million US dollars.
M-Pesa can be used on mobile devices. The ‘Super App’ and ‘Business App’ are available to download on the Google Play Store for Android and the App Store for iPhone. Users can deposit funds by visiting an authorized administrator and paying with cash. Alternatively, funds can be deposited through a bank account.
Once customers have signed into the web portal with their login credentials, they can access the M-Pesa menu and manage their mobile wallet, send money to other users, or make business payments for a range of goods and services. There is even the option to set up Xpress (Express) Billing, which allows customers to quickly make payments.
Not only is the transfer solution a popular choice for banking in Africa, but many customers also use it to fund trading accounts. It provides a fast, cheap and secure way for traders to deposit and withdraw funds. M-Pesa is accepted by a range of international brokers, including Plus500, FXTM and XM.
Accepted Countries
M-Pesa is used in Africa and other countries around the world. Its operating areas include Kenya, Tanzania, Mozambique, the Democratic Republic of Congo (DRC), Ghana, Egypt and Lesotho. Outside of these countries, the brand has users in Zambia, Nigeria, South Africa, Uganda, Rwanda, Ethiopia, Zimbabwe, Malawi and Qatar, among others.
Unfortunately, the brand’s services in India, Romania and Albania were terminated due to low market uptake. However, customers can send and receive money in the UK and US through the company’s partnerships with Global Western Union and Mastercard.
Transaction Times
In most cases, transfers are processed almost instantly. With that said, there may be times when it can take up to 24 hours on weekdays or the next business day on weekends. If payments are taking longer than this, contact the customer care team via email or phone.
If you are using M-Pesa to make deposits at brokers, payments are usually processed instantly. And importantly, deposit times are much quicker than standard bank transfers which can take one to two business days.
The process for withdrawals is slightly different. They typically take longer, however, this is not limited by M-Pesa. Instead, it is the time taken for the broker to verify and process transactions. This can vary between trading platforms, but it is usually between 24 hours and two business days. Plus500, for example, states that withdrawals using M-Pesa will be processed within 24 hours. After this, funds should appear in your mobile wallet.
Pricing Review
Fees are related to the size of the transfer. They are calculated and processed using the Kenyan currency, KSh or Kenyan Shillings. There is no charge for transfers up to the value of 100 KSh, however, withdrawal fees from agents may still apply. The transaction fee gradually rises in increments from this point. For example, payments between 1,501 and 2,500 KSh have a charge of 22 KSh while payments between 10,001 and 15,000 KSh have a charge of 97 KSh.
Importantly, the fee is low compared to the amount of money being transferred. Payments are effectively free, customers simply pay for the airtime used. Before you fund an online trading account, check the full breakdown of 2024 charges and tariffs on the official website.
The daily deposit limit was recently increased to 300,000 KSh and the maximum transaction is 150,000. Customers can also withdraw no less than 50 KSh from an agent and no more than 150,000 KSh.
Note, trading brokers do not usually charge for deposits and withdrawals using M-Pesa. Still, this can vary so check your broker’s website first.
Security
M-Pesa requires all users to complete know-your-customer (KYC) checks before they can deposit funds. The firm also verifies all transactions. This is to ensure your account has the required funds, you have the right to send money and that the account you are sending to is legitimate.
The company has worked hard to ensure all customer data is protected from thefts and hacks. It implements a range of features designed to improve the security of its service. Overall, M-Pesa is a relatively secure method for transferring money around the world.
Pros of M-Pesa for Traders
The key advantages of trading with M-Pesa are:
- Increases payment accessibility across Africa
- Vodafone & Safaricom ownership model
- Leading Africa joint payments venture
- Low fees and withdrawal rates
- Lightning-quick deposits
- PayPal partnership
- Fast withdrawals
- High security
Cons of M-Pesa for Traders
Drawbacks of trading with M-Pesa include:
- Limited supporting countries outside of Africa
- Accepted by a relatively short list of brokers
- Fiat to cryptocurrency payments not allowed
How to Make M-Pesa Deposits & Withdrawals
To make deposits and withdrawals at swing trading brokers, follow this simple guide:
- Download the M-Pesa app and complete the registration process, filling in the necessary information and providing the required documents
- Insert a Safaricom sim card into your phone and link this with your new account
- Deposits funds into your account either by visiting an M-Pesa agent, bank transfer or card payment
- Login to your trading account and select deposit or withdraw funds
- Choose M-Pesa from the list of options and enter the amount you wish to transfer
- Confirm the payment
Verdict
M-Pesa is a popular payment method in Kenya and much of Africa. It has brought digital transfer services to those who could not previously access traditional banking products. With quick speeds, low fees and high security, it is perfect for making deposits and withdrawals at online trading brokers.
FAQ
Can You Use M-Pesa In The US?
Yes, M-Pesa is available in the United States. The company has a partnership with Global Western Union which allows customers to send and receive money from all corners of the globe.
Is M-Pesa Cheap?
M-Pesa is a low-cost payment solution. Transaction fees are small compared to the amount being transferred and other payment services, such as bank wire transfers.
M-Pesa, How Does It Work?
M-Pesa works via the customer’s mobile phone. The Safaricom sim card links to the user’s account and allows them to make transfers.
Is M-Pesa Safe?
M-Pesa is relatively secure. The company utilizes a range of security features to protect customers’ funds and data.