Benefits of Lipa Na Mpesa To SMEs
The Lipa Na Mpesa has three options namely PayBill, Buy Goods and Pochi La Biashara which all deal with cashless payments from and or to customers. The three are all usable by any business venture but have different characteristics.
- Buy Goods and Services
Buy Goods and Services is a Lipa na Mpesa option that offers businesses a payment collection using the Till Number. The till is registered using a Sim Card with a Till Number separate from a personal mobile phone number. With a till customers do not incur any charges unless they are making payments at fuel stations. The business owner is charged 0.5% and not more than 200 shillings per transaction and zero shillings is charged on collections of 200 shillings and below. It works for both big and small businesses. The service has its enhancement (Mpesa Business Till) which allows businesses to have other transactions using the money they have collected in the till.
2.PayBill
This service allows businesses to receive payments from customers using Business Numbers and Names. The payment solutions are either single or bulky payments where applicable. Unlike the Buy Goods Service, PayBill charges transaction fees from customers but at a lower rate. The account is usually linked to a bank account of choice.
Benefits of Lipa Na Mpesa’s Pay Bill and Buy Goods to Small Businesses
The transactions are usually secure as they are between the businesses and their customers. The customer is not allowed to reverse the money until the business owner makes a request to Safaricom customer care. Since the transactions are cashless, the business owner does not have to go through the hassle of looking for a change. Payments are made in the exact amount and as determined by the business. Accessible by any phone. The services are not limited to any mobile device making them easy to use by both businesses and customers. The payment process is easy to understand by any user. It requires no internet connection if the customer’s phone has a Sim Tool Kit. Just like most Safaricom transactions, Lipa Na Mpesa transactions are instantaneous. Much time is saved and the merchant can serve many customers at a time. This is way better compared to making payments through the bank or using bank cheques. The services are available at any time of the day allowing transactions and quick access to collected funds. The application is processed faster and the merchant can have a till number ready in 24 hours after application while Pay Bill applications might take 48 hours. The business money is separate from personal money as the money goes to the pay bill number or the till number. The business owner is able to plan and know the exact income the business generates. Customers’ information, as well as payment statements, are accessible making it easier to track and confirm how payments have been made.
- Pochi La Biashara,
Pochi La Biashara has many things in common with Pay Bills and Buy Goods but what makes it different is that payments are made to the merchant’s personal Safaricom number. Its unique benefits include;
the simple registration process with zero paperwork Impossible cash reversals unless merchant makes a request to Safaricom’s customer care Separates business money from personal money. This makes it easier to plan with business money. Merchants have access to mini-statements thus understand how transactions have been done.