How to Start an MPesa Agent
Although the M-Pesa business is one of the most popular in Kenya, many people are unaware of how to become an M-Pesa agent.Let’s look at how you can start this business and what you’ll need.
Requirements for becoming an M-Pesa agent
Safaricom requires all prospective agents to be registered as a LIMITED company or equivalent, with at least three outlets ready to offer MPESA under the company names, in order to become an M-pesa Agent.
The company MUST have been in business for at least 6 months.
Prior to the start of business, the proposed outlets will be audited, and only applications for outlets in opportunity areas will be considered.
Amount of float Required
The biggest challenges most entrepreneurs face while starting their Mpesa business is the minimum investment required to operate that has been set by Safaricom.
According to Safaricom, an agent will be expected to invest the following amounts:
1). Kshs 100,000 per outlet for float.
2). Kshs 100,000 for SIMEX (SIM replacement cards).
3).Kshs 100,000 per outlet for additional outlets for float.
Safaricom recommends that the agent hire competent personnel with a minimum of KCSE to handle the service. The following are some of the daily tasks that agents will be expected to complete:
M-PESA Customer Registration
Depositing cash into registered customers M-PESA accounts.
Processing cash withdrawals for registered M-PESA customers.
Processing cash withdrawals for non-registered M-PESA customers.
Safaricom AML & KYC Policy Observance.
Observance of Safaricom’s business practices.
Branding of their outlets in accordance with the guidelines provided.
How to become an M-Pesa agent: Sub dealer.
You will need the assistance of an agent as a sub-dealer.
An agent assists you in obtaining an M-Pesa line and also ensures that you meet all of the requirements before signing a contract to begin the business.
Safaricom also requires the following details from the Agent:
2.At least 3 outlets ready to offer M-Pesa services
3. At least Sh 300,000 made available for each outlet for float and sim replacement cards
4. Be in trading for at least 6 months
5.Have qualified staff to run the outlets
6.Have an ETR Machine
7. Have a Computer
8. Have a Printer
9. Have internet connectivity, among other technical requirements.
NOTE: The amount you can make in the M-Pesa business can be as low as KSh4 per transaction, this therefore means that your business must be able to attract many people in order to make you substantial money.
This also means that you should set up your shop in a busy area where more people can visit your shop and access M-Pesa services.
Advantages of aggregated M-Pesa lines?
with aggregated mpesa lines you will get the recommended Safaricom split commissions percentage i.e. 80% for you and 20% for your principal.
This is by far the best rate because non aggregated lines attract up to 40% and in some occasions you don’t even get to know what you earned fo the whole month meaning unscrupulous super dealers can take even more without your knowledge if you don’t follow up for summarized till/agent line performance report.
2.Direct payment of commission by Safaricom
You don’t have to wait on on your principal to reimburse commissions, you get it directly from Safaricom into your working account by 1st of a new month.
3.No delays in remittance of commissions
All your commissions for your till accrued in the past month are summed up by 0059hours before beginning f new month and yes ,you have your commission by 1 of a new month unlike non aggregated lines where principals can take time to send you your commissions.
Faster conflict resolutions- in some occasions their might be some issues with your principal or vice versa e.g. some uncouth principals might feel their leased lines aren’t performing well(getting less commissions than anticipated) and might want to reclaim them without your approval,. Such scenarios are easily resolved if you are using aggregated line unlike non aggregated when the arrangement is informal.
Aggregated lines come with a float management feature which enables you to easily manage your line/till e.g. by giving you an option to get cash from super agents(banks, certified super agents Mpesa outlets) by exchanging excess e-float with cash and vice versa.
This is extremely economical for any mpesa agent because it gives you a very cheap way to balance and manage money in your till. How to become an MPesa agent