Do you want to know how Mpesa agents make a profit? Read this guide.
Safaricom has made Mpesa the main platform for mobile banking.
As such, millions of transactions are carried out through Mpesa daily in withdrawals from banks, paying fees, shopping, and paying other bills, for instance, the electricity bill.
Consequently, Mpesa agents make their profits according to the number of transactions they make.
This article is here to make you understand how Mpesa agents make their profits.
How Mpesa Commission Works
Mpesa employs a hierarchical structure. Its operations begin from the highest level and trickle down to the lowest level, which is the agent and eventually the sub-agents.
You mostly interact with Mpesa sub-agents when you visit a Mpesa agent shop for simple deposits and withdrawals. Safaricom Company determines the commission earned as an agent.
Mpesa agents profit from the number of transactions they make through the disbursed money to the Mpesa users.
Safaricom raised the deposit commission by 12%-170% to ensure that its agents receive better payments on high-value transactions and serve as an enticement to hold a considerable float.
How To Calculate Mpesa Agent Profit
Deposits and withdrawals are the two main transactions that determine an agent’s profit, also known as commission.
Safaricom pays the agents a commission for deposits even though there are no transaction charges on making deposits.
During withdrawals, Mpesa users are charged a certain amount of withdrawal fee depending on the amount withdrawn. Safaricom then distributes this fee to the Agents and sub-agents.
Mpesa Commission Structure
Safaricom has a detailed structure in the form of a table specifying the commission a Mpesa agent makes for both deposits and withdrawals.
This structure is reviewed by Safaricom, regularly increasing or decreasing deposits or withdrawal commission percentages.
How Mpesa Can Make Profit From Cash withdrawal and deposit – Commission Table
The table represents the commissions that Mpesa Agents make through withdrawals;
Transaction Commissions (registered Commissions (unregistered bands customers) customers)
10-49 N/A N/A
50-100 5 N/A
101-500 8 8
501-1,000 10 10
1,001-1,500 12 12
1,501-2,500 15 15
2,501-3,500 20 20
3,501-5,000 25 25
5,001-7,500 30 30
7,501-10,000 35 35
10,001-15,000 45 45
15,001-20,000 60 60
20,001-25,000 65 65
25,001-30,000 70 70
The following table shows commission earned through deposits;
TRANSACTION BAND COMMISSION
50-100 4
101-510 8
511-1,010 9
1,011-1,510 10
1,511-2,510 11
2,511-3,510 12
3,511-5,010 14
5,011-7,510 20
7,511-10,010 28
10,011-15,010 40
15,011-20,020 55
However, it is important to note that dormant Mpesa agents need to activate their accounts to make more profit.
This simple and easy article Was Last Updated on by Nana Abrokwa
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