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Are you aware of how Mpesa agents make profit?
Don’t worry. That is the main purpose of this post.
In Kenya today, more transactions are carried out through Mpesa, even withdrawing money from your bank account.
Hence it means Mpesa agents are making a lot of money.
Recommended reading: How to Deactivate M-Pesa Account.
Safaricom has made Mpesa even more appealing by introducing its ability to pay school fees, electricity bills and shopping and much more.
However, even though there are all these transactions within Mpesa, not all agents make a substantial amount of profit.
You may ask why?
Yes. This is because the profit made by M-Pesa agents is determined by the number of transactions you make.
This article will enlighten you on how Mpesa agents make money.
We will take you through the Mpesa commission calculator to make you understand better how Mpesa agents make profits.
Read also: How to Become Mpesa Agent In Kenya.
How Does Mpesa Commission Work?
This is a very good question. Before you know much profit you will make as an M-Pesa agent, you need to know how the Mpesa commission is structured.
The structure of Mpesa is hierarchical, in that its operations start from the higher level to the lower level rank (agents) to as well as sub-agents.
In most cases, Mpesa users interact with sub-agents who work under the authorized Mpesa agents.
And this is basically how Mpesa agents make profit.
Don’t get confused here; remember as a Mpesa agent, you have just invested in someone else’s company; hence, there is a hierarchy.
It means it is the Safaricom company that determines the commission you shall earn as an Mpesa agent.
Mpesa agents make money or profit from the transaction they make through the amount of money they disburse to Safaricom Mpesa users.
In 2019 Safaricom increased the deposit commission by 12%-170% to ensure agents have better rewards on high-value transactions and also to serve as an incentive to hold adequate float.
I know this figure will even go higher in the year 2020.
Related article: How to Change Safaricom Mpesa Registration Details – Step By Step.
How To Calculate Mpesa Agent Profit
The profit made by the Mpesa agent is termed as commission.
The two central transactions which determine the amount of profit is the deposits and withdrawals.
Even though there are no charges when Mpesa user makes deposits, Safaricom will pay commission for performing that service.
When the Mpesa user withdrawals money, he or she is charged a particular amount depending on the amount withdrawn.
Safaricom goes ahead to distribute that fee to the Mpesa agent as well as to sub-agents.
I think that is fair and I know you will also agree with me.
Mpesa Commission Structure
Safaricom has a structure in table form indicating the amount of commission you get as a Mpesa agent on every transaction you make. This commission is for both withdrawal and deposit.
It is important to note that now and then, Safaricom does review this commission structure by increasing deposits or withdrawals of some deposits, decreasing others, and maintaining other’s status quo.
So please, a caution here is always crosschecking with the latest commission structure published by Safaricom M-Pesa.
For example, the latest review led to an increase in the commission percentage on the deposits to encourage more deposit transactions.
For you to know exactly how Mpesa agents make profit, take a critical look at this.
Here is the commission table used to calculate the Mpesa agent commission;
The cash deposit commission table
The table represents the amount an Mpesa agent will earn on every deposit transaction he or she makes to Mpesa users.
Mpesa Withdrawal Charges Table For 2020
|Transaction Range||Mpesa Charges/Commission For Registered Customer||Mpesa Charges/Commission For Unregistered Customer|
|10.0 - 49||N/A||N/A|
|50 - 100||5||N/A|
|101 - 500||8||8|
|501 - 1000||10||10|
|1001 - 1500||12||12|
|1501 - 2500||15||15|
|2501 - 3500||20||20|
|3501 - 5000||25||25|
|5001 - 7500||30||30|
|7501 - 10,000||35||35|
|10,001 - 15,000||45||45|
|15,001 - 20,000||60||60|
|20,001 - 25,000||65||65|
|25,001 - 30,000||70||70|
|30,001 - 35,000||70||70|
|35,001 - 40,000||100||N/A|
|40,001 - 45,000||150||N/A|
|45,001 - 50,000||180||N/A|
|50,001 - 70,000||200||N/A|
The withdrawal commission table
After an M Pesa user withdrawal through your Mpesa agent number, the chart below represents the commission you will earn, depending on the amount withdrawn.
Mpesa Agent Commission Table/Chart For 2019 & 2020
|Mpesa Deposit Range||Mpesa Commission In Ksh|
|50 - 100||4|
|101 - 510||8|
|511 - 1,010||9|
|1,011 - 1,510||10|
|1,511 - 2,510||11|
|2,511 - 3,510||12|
|3,511 - 5,010||14|
|5,011 - 7,510||20|
|7,511 - 10,010||28|
|10,011 - 15,010||40|
|15,011 - 20,020||55|
|20,021 - 25,020||71|
|25,021 - 30,020||87|
|30,021 - 35,020||103|
|35,021 - 40,020||119|
|40,021 - 45,020||135|
|45,021 - 50,020||150|
|50,021 - 60,020||190|
|60,021 - 70,000||190|
Tags:Kenya, M-Pesa, Mpesa Agent, Mpesa Guide, Safaricom
Are you using Safaricom M-Pesa to transfer your money? Great idea! But are you doing it the right way? We are here to help you with everything you need to know about Mpesa in Kenya and other countries. Be it an Mpesa Agent or ordinary user we will teach you how to Register, Activate, Send, and Receive mobile money, and even pay bills via M-Pesa.
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