MPESA Business

Type: Financial Services (Mobile Money Transfer)

Key Product/s for Sale: MPESA services including deposits, withdrawals, money transfers, and bill payments.

Technology Considerations:

1. Integration of Safaricom’s MPESA platform
2. Counterfeit cash detector for ensuring transaction authenticity

Market for the Product/s:
Individuals seeking convenient and reliable mobile money services
Small businesses and entrepreneurs needing financial transaction solutions

Key Inputs into the Business:
Initial investment capital: Kshs 70,000
Minimum float: Kshs 30,000
Rental space for shop
Necessary equipment (computer, printer, counterfeit cash detector)
Licenses and permits.

Product Preparation Process:
Complete the registration process with Safaricom for MPESA services
Obtain necessary licenses and permits
Set up shop in a high-traffic location with adequate security measures.

Quality Considerations:
Reliable and secure transactions
Adequate float to ensure smooth service delivery
Regular maintenance and updating of equipment for optimal performance

Cost of Investment:
Initial investment: Kshs 400,000 (At least)
Minimum float: Kshs 100,000
Furniture and operational costs like ETR machine etc: 50,000 (optional)
Permits.

Safaricom requires you to have the following documents to become an MPESA agent.
Filled agent forms
Good conduct certificate
Certificate of incorporation
CR12 certificate showing the details of shareholders of the limited company
ID copies of administrators and assistants
Outlets: Business permits for every outlet
Overall Cost: 15,000 for the things stated above but depends on the county

Safaricom requires you to meet the following financial demands
A minimum initial float of Kshs 100,000
Maintain a minimum of Kshs 100,000 float in all your outlets
3 outlets covered by a limited company: Your outlets should be in different counties

Required Operational Infrastructure:

1. Rental space in a high-traffic location
2. Computer, printer, and counterfeit cash detector
3. Stable internet connection
4. Furnishings and stationery for the shop.

Most Suitable or Viable Location of the Business:

1. High-traffic areas near retail shops, pharmacies, and other businesses
2. Urban or semi-urban locations with a high demand for mobile money services

Potential Sources of Investment Capital:

1. Personal savings
2. Microfinance organizations
3. Borrowing from friends or relatives

Requirements for Effective Management:
Skilled management team for business operations
Knowledgeable staff to handle transactions and customer inquiries
Compliance with Safaricom’s regulations and guidelines

Role of Mobile Phone and ICT in the Business:
Integration of MPESA platform for transactions
Use of mobile phones for communication with Safaricom and customers

Statutory Regulations and Licenses:
Fulfillment of Safaricom’s requirements for MPESA agents
Obtaining business permits and licenses from local authorities
Compliance with financial regulations and anti-money laundering policies.

Pricing:
Commissions earned from transactions facilitated
Competitive pricing based on market rates and service quality.

Profitability:
Monthly returns of Kshs 50,000 and above in busy locations
Potential for increased profitability through additional services and customer base expansion

Next Steps to Take:

1. Secure initial investment capital and float
2. Complete the registration process with Safaricom
3. Obtain necessary licenses and permits
4. Set up shop in a suitable location
5. Train staff and ensure smooth operations
6. Implement marketing strategies to attract customers and increase profitability.