What is M-PESA?
M-PESA Kenya is an electronic mobile money service that
allows you to store, send and receive money on your mobile phone. With an
M-PESA account, you can transfer cash and shop for products and services. You
can also withdraw cash by visiting an agent (typically in a corner shop) or
transfer it to others from your phone. This makes it a quick, safe and simple
way to make payments and handle money.
Key facts about M-PESA
- M-Pesa
is one of the innovative tools that’s been born out of a collaboration of
telecommunications and banking sectors in East Africa
- It was
launched in Kenya and is now used in 10 countries, including India and
Romania.
- New
technology in the financial sector has made it possible for financial
services and products, like M-Pesa, to be accessible at small costs.
- M-Pesa
makes it possible for unbanked people to pay for and receive goods and
services using a mobile phone instead of utilising a brick-and-mortar bank
How does M-PESA work?
M-PESA is a virtual banking system (mobile money service)
that offers transaction services through a SIM card on a mobile phone. In Kenya
this must be with a Safaricom SIM card. The SIM card is inserted into the card
slot of the mobile device and users can receive and store money, as well as
make payments and transfer money to vendors and family members using SMS
messages.
It’s particularly useful to users who have no bank accounts
and live in remote rural areas. They are able to access the numerous M-PESA
outlets distributed across the country. Money that needs to be stored is given
to the kiosk attendant, who transfers the amount in digital form to their
M-PESA account that sits on their phone.
How do I open a M-PESA account?
Registration
To open an M-PESA account you must register first by
visiting an M-PESA agent outlet, Safaricom shop or Care Desk to register.
You’ll need a mobile phone with a Safaricom SIM card and valid identification
document, which can be:
- Kenyan
National ID
- Valid
Kenyan Passport
- Valid
Foreign Passport
- Kenya
Military ID
- Kenyan
Foreigner Certificate
Please note that valid foreign passports, Kenya Military ID
and Foreigner Certificate must be registered at a Safaricom shop or Care Desk
as the Agent can only register users with Kenyan passports or National ID.
You’ll receive a confirmation message and numeric start key
PIN to activate M-PESA on your phone. Then you and the agent will fill in and
sign a registration form – which you’ll keep as proof of registration.
Activation
After successfully registering, you’ll need to activate
M-PESA on your phone using the 4-digit M-PESA PIN sent by SMS after
registration.
Here’s how:
Go to the SAFARICOM menu on your phone and:
- Select
M-PESA menu, then select Activate
- Enter
the M-PESA PIN received via SMS
- Create
your own secret PIN (4-digit number) and confirm it
- Enter
ID number – same one used during registration
- On
successful activation, you’ll receive a confirmation message with your
balance
With the M-PESA menu on your phone, under Safaricom, you can now store, send and receive money and airtime using your mobile phone. You can buy items in shops or online, pay bills, school fees, and top up mobile airtime. You can also withdraw cash at authorised agents.
$ads={2}