M-PESA Paybill serviceC2B

What is available in M-PESA?

Cash In Cash OutOver 20,000 agent outlets countrywide

Person 2 Person TransferKShs. 596 Billion (USD 5.27B)transferred since launch (Sept 2010)

Airtime Top-UpFlexi Value anywhere you are

Bill PaymentOver 500 Pay Bill Partners

ATM Withdrawals24/7 accessOver 650 ATM’s connected countrywide

Social/Salary Paymentsover 120 bulk payment Partnerships Partnerships with Oxfam, Concern worldwide and other NGO’s

Why Mobile Money Transfer?

40%

60%

People without Mobile Phones

Mobile Penetration

80%

20%

Unbanked

Banked

Only 20% of Kenyans have bank accounts but many more have access to a mobile phone & the gap is widening

Addressable Mobile Market Banked Population

Growth of M-PESA

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2

4

6

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10

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16

Mar

-07

May

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Jul

-07

Sep

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Nov

-07

Jan

-08

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May

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Sep

-08

Nov

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Jan

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Mar

-09

May

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Jul

-09

Sep

-09

Nov

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Jan

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Mar

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May

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Jul

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Sep

-10

Nov

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Jan

-11

Millio

ns

M-PESA Mobile Active CustomersCash In Cash OutOver 26,000 agent outlets countrywideOver 13.6M active customers

Person 2 Person TransferOver Ks. 45B transferred monthly

Airtime Top-UpFlexi Value anywhere you are

Bill PaymentOver 500 Pay Bill Partners

ATM Withdrawals24/7 accessOver 650 ATM’s connected countrywide

Social/Salary PaymentsOver 120 bulk payment Partnerships Partnerships with Oxfam, Concern worldwide and other NGO’s

M-PESA PAYBILL

The Product

M-PESA PaybillThis is a service that allows registered M-PESA users to pay bills through their M-PESA enabled Safaricom lines.

KEY OBJECTIVESBeneficiaries to access their funds fasterTo reduce cost of processing payments To reduce payment processing timeTo increase security

To beneficiary:FastSafeAffordableConvenientAvailabilityFree to register

BENEFITS OF M-PESA PAYBILLTo the Organization

Customer Convenience

Low cost

Real time collections

Secure platform

Compatibility to handle large

volumes

Application Process

Required Documents1. Service Request Form

2. Utility Application form

3. KYC Documents

Microsoft Office Excel 97-2003 Worksheet

Microsoft Office Excel 97-2003 Worksheet

Adobe Acrobat Document

Application Process

Customer Experience

X-DP200 confirmedKs3250 sent to CCNfor accountABC123456789 on29/6/08 at 2.26 PMNew balance Ks1750

Pay bill 600600Account ABC123456789Ks3250

OK Back

Enter PIN

****

Enter amount

3250

Enter accountno.

ABC123456789

Enter businessno.

600600

Schematics

Short Code

Financial Information System

Pay Bill No.A/c No.

Business Offices

1

2b

3 4

5a

5b

2a

Schematics

Customer makes balance query to a short code XXXX (alternative the business may decide to “push” the bill monthly) Query received and processed by the organization’s FIS and returns the balance due to the customerCustomer makes the payment through M-PESAM-PESA record received by the business and is processed by the FISFIS updates customers records and sends an sms to the customer informing him of his new account balance

Business Experience

Each Pay Bill client will have a unique business number

Each Pay Bill client will operate 3 different M-PESA accounts

• Utility account – this reflects all customer payments

• Charges paid account – this indicates amounts owed to

Safaricom

• M-PESA account – this is the interface between the Pay Bill’s

utility account and Safaricom

Sample of web utility a/cThe business can monitor amounts deposited on line and can also have this report in either PDF or Excel

Sample Utility Account ReportThe business can generate reports in PDF or export them in

an excel format

The business can engage a third party to automate the process and come up with an end to end solution

Sample of Business Terminal

From Phone Number Time Content

  2519 11-12-09 8:35

X-EP311 Confirmed. on 12/11/09 at 5:34 AM Ksh100 received from Maina Ben 254717708488. Account Number 123ABC New Utility balance is Ksh3,150

  251910-22-2009 8:29:00 AM

X-EP309 Confirmed. on 12/11/09 at 5:24 AM Ksh100 received from Jackie Sanders 254716608430. Account Number TEST New Utility balance is Ksh2,950

The business can also generate reports from a modem and export them in a csv format

Sample of Web Based Charges Account

Float Transfer

The Business will identify two or more Operators who will be

responsible for transfer of float from the utility account to the M-

PESA account

The 1st operator creates the transaction

The 2nd operator confirms the transaction

The request will then be visible to Safaricom

The business will initiate an EFT to their registered bank account,

this will take effect within a maximum of 48 hours

Minimum EFT amount Ks. 50,000

Customer Transaction Limits

Per transaction Kes 70,000Per day Kes 140,000Per account Kes 100,000

Issues to Consider

Integration of M-PESA into the current

payment processes

Associated costs of integration

Tariff– who pays?

Authority and responsibility relationships