Safaricom is considering cutting down M-Pesa charges for higher volume retention.
The firm has been experiencing higher volumes since Central Bank of Kenya (CBK) zero-rated transactions below Ksh1,000 as an economic COVID-19 intervention measure, resulting in huge dip in revenue from the M-Pesa pool.
According to The Business Daily, Safaricom Chief Executive Peter Ndegwa has hinted that the firm might offer lower rates in M-Pesa transactions to extend the pool of customers using the service.
Customers increased their transaction frequency following the CBK directive thereby boosting the revenue.
The value of M-Pesa transactions increased by 32% to Ksh9.04 trillion.
CBK announced the removal of charges on M-Pesa transactions of up to Sh1,000 from March 16 to December 31.
Bank-to-mobile phone transactions were to also be free during the same period.
The Business Daily quoted the CEO saying,
“We are considering but we would want to see how consumers respond to volumes before we make a significant judgment on that.”
Ndegwa added, “It is something we are looking at and we intend to reduce our transaction costs over time. How quickly we do that is something we want to judge but certainly we haven’t made a decision yet at this stage.”
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