New M-PESA Charges for Withdrawals from an Agent, ATM

Mobile money has transformed the way we handle financial transactions in our day-to-day lives.

One such mobile money service that has revolutionized the financial landscape in Africa is M-PESA.

Launched in 2007 by Safaricom, M-PESA has made sending and receiving money more accessible, faster, and cheaper for millions of people in Kenya and beyond.

However, as with any financial service, there are charges associated with using M-PESA, particularly when it comes to withdrawing cash from an agent or an ATM.

In this article, we will explore the various M-PESA charges associated with withdrawals and how they affect the end-users.

M-PESA

M-PESA is a mobile money transfer and payment service that was launched in Kenya in 2007 by Safaricom, a telecommunications company.

It allows users to deposit, withdraw, transfer money, pay bills, and buy airtime using their mobile phones, without the need for a bank account.

M-PESA is particularly popular in Kenya, where it has become a widely-used means of sending and receiving money, paying bills, and even for small business transactions.

The service has also been introduced in several other countries, including Tanzania, Mozambique, and India.

M-PESA works by allowing users to deposit money into their mobile wallet at a registered M-PESA agent, such as a Safaricom shop, and then use their mobile phones to transfer money to other M-PESA users or pay bills. Users can also withdraw cash from their mobile wallet at an agent location.

M-PESA has had a significant impact on financial inclusion in Kenya, particularly for those who previously lacked access to formal banking services.

The service has also been credited with reducing crime rates associated with carrying cash, and enabling small businesses to operate more efficiently.

M-PESA charges for withdrawals from an agent

How to withdraw from an M-PESA agent

Via USSD

1. Dial *334#
2. Select withdraw cash.
3. Select withdraw from agent>>Enter agent number which is displayed at the agent’s shop.
4. Enter store number displayed at the agent’s shop.
5. Enter the amount you wish to withdraw.
6. Confirm and accept transaction details.
7. You and the agent will receive an SMS confirming the transaction.

Via Android phone

1. Go to Safaricom Toolkit.
2. Navigate to M-PESA.
3. Locate Withdraw Cash.
4. Select the first option; From Agent.
5. Enter agent number displayed at the shop.
6. Enter store number displayed at the agent’s shop.
7. Enter amount you wish to withdraw.
8. Enter your M-PESA PIN and hit OK.

Via iPhone

1. Go to Settings.
2. Select Mobile Data.
3. Select SIM Applications.
4. Navigate to M-PESA.
5. Locate Withdraw Cash.
6. Select the first option; From Agent.
7. Enter agent number displayed at the shop.
8. Enter store number displayed at the agent’s shop.
9. Enter amount you wish to withdraw.
10. Enter your M-PESA PIN and hit OK.

Via mySafaricom App

1. Open mySafaricom App.
2. Hit M-PESA at the bottom of your screen.
3. Locate Withdraw Cash.
4. Enter agent number, store number and amount the hit the Continue button.
5. Enter your PIN and confirm the transaction.

M-PESA charges for withdrawals from an ATM

M-PESA withdrawal from an ATM

This service is available to M-PESA registered users who wish to withdraw funds from their phone at the bank’s Automated Teller Machine (ATM). 

To withdraw, there is a two-step process that customers will follow.

Via phone

1. Open M-PESA via Sim Toolkit, USSD, My Safaricom App or M-PESA Super App.
2. Select withdraw from ATM
3. Enter ATM number >>Enter your M-PESA PIN
4. You will receive SMS notification from M-PESA with a 6-digit authorization code

The code expires after 10 minutes, and you will be expected to initiate the transaction afresh if you wish to withdraw money again.

Via ATM machine

1. Select the M-PESA button on the ATM
2. Select your preferred language
3. Enter the 6-digit ATM Authorization code on the ATM Keyboard
4. Enter your Safaricom mobile number
5. Enter the amount you wish to withdraw; press continue to proceed with transaction
6. The ATM will dispense your cash and issue you with a receipt. You will also receive an SMS from M-PESA confirming the transaction.

M-PESA withdrawal for unregistered users

When you send money to an unregistered customer, they will receive a one-time voucher from M-PESA with a 4-digit code which they will use to withdraw money from an M-PESA Agent.

In case this SMS is not received or accidentally deleted, the receiver can call line 100 or 200 and request for the voucher to be re-sent.

Below are the steps Unregistered Customers will need to follow to access the hard cash.

• Go to an M-PESA Agent.
• Confirm if the Agent has enough funds for your transaction.
• Present the SMS containing the M-PESA Voucher Number
• Give your phone number and show the original ID.
• Both the Agent and the customer will receive an SMS confirming their transaction.
• The Agent will give you cash of the equivalent value shown in the Voucher.

Important points to note

Below are some important points to note about M-PESA charges.

1. Maximum Account Balance is Kshs.300,000
2. Maximum daily transaction value is kshs.300,000
3. Maximum amount per transaction is Kshs.150,000
4. The minimum amount you can withdraw at an M-PESA Agent is Kshs.50
5. To initiate M-PESA person to person self-reversal, send the transaction confirmation to 456
6. To be able to transact, your Safaricom line and M-PESA account must be active.
7. One can deposit funds only into M-PESA account registered under their own identification document (ID). Depositing directly into third party accounts is not allowed.
8. You will earn Bonga Points from the M-PESA fee charged when you transact.
9. To transact at any M-PESA agent outlet, you will be required to produce your original identification document with which the M-PESA was registered, i.e., National ID or Kenyan Passport
10. Dial *334# to view application charges or use M-PESA cost calculator on My Safaricom App

How to send money using M-PESA

You can send money or transfer money to mobile numbers of both registered and unregistered users.

To send money, you must have money in your M-PESA account.

Send money can be accessed via various channels as listed below.

1. STK (Sim Tool kit)
2. M-PESA Super App
3. Safaricom App
4. USSD *334#

Via SIM Toolkit

1. Select M-PESA.
2. Send Money.
3. Enter Phone No.
4. Enter Amount.
5. Enter M-PESA PIN.
6. You will receive a message that prompts you to confirm on the mobile number and the amount you are to send.
7. A message will pop up with Cancel or Ok.  You can Cancel if you notice that the number entered is not correct or select Ok if the details are correct.
8. Another message will pop up with the name of the person you were sending money to, the amount the person will receive and the cost of the transaction.
9. You can either select 1 to Accept (if the details given are correct) or select 2 to Cancel (if you notice an error in the transaction).

Via M-PESA Super App

1. Open the M-PESA App.
2. On the home tab select send and request.
3. Select send money.
4. Enter phone number or select the number from your contacts.
5. Enter amount.
6. Complete the transaction using M-PESA PIN or biometric authentication.
7. You will receive an SMS confirmation that funds have been sent from your M-PESA Account.

Via Safaricom App

1. Launch my Safaricom app.
2. Select send money.
3. Enter phone number or select number from your contacts.
4. Enter amount.
5. You will receive a prompt message that asks if you can proceed with the PIN transaction>select send.
6. Complete the transaction using M-PESA PIN or biometric authentication.
7. You will receive an SMS confirmation that funds have been sent from your M-PESA Account.

Via USSD

1. Dial *334#.
2. Select send money.
3. Enter phone number.
4. Enter amount.
5. Enter M-PESA PIN.
6. You will receive a message that prompts you to accept or cancel.
7. Accept, and the transaction goes through.

Depositing money to your M-PESA account

1. Go to an authorized M-PESA agent with your phone and original ID
2. Inform the agent how much you wish to deposit
3. They will use their agent phone to send you e-money in exchange for cash
4. You and your agent will receive an SMS from M-PESA confirming the transaction

You could also top up your M-PESA account from your bank account.