How to Start an Mpesa Agent Shop

M-pesa is a mobile money transfer service provided by Safaricom. For one to get to transfer money from one user to another, they have to visit an M-Pesa agent.  How does one become an M-pesa agent? Mpesa Agent Shop

People who wish to become M-pesa agent are advised to visit http://www.safaricom.co.ke/personal . Once you are on the home page of Safaricom, scroll down and click on M-pesa icon.

The link will provide you with information on the M-pesa Agents roles, what M-pesa agents include and M-pesa agent downloads.

Below are the links you can click on to become and M-Pesa agent.

Below are the links you can click on to become and M-Pesa agent.

• M-PESA Agent Requirements
• Extra Till Application Form
• Agent Store Application Form
• Agent Additional Store Application Form
• Management Till Application Form
• Agent (Head Office) Application Form
• The Kenya Police Certificate Of Good Conduct Application
• Personal Declaration Form

These links will provide you with all the application forms that you need to submit to qualify as an M-Pesa agent.

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This is how sub-agent stores should work.

1. The sub-agent is recruited to work under the agent but; his line is aggregated — meaning the sub-agent shop is registered directly by Safaricom
2. The Sub agent then gets a till to carry out Mpesa transactions
3. The sub-agent is then required to get store management till which is used to manage the float. You can get this at KCB bank. Note — Safaricom will deposit your monthly commissions in this account
4. You need to maintain a minimum float of Ksh. 30,000
5. You get 80% commission while the agent who recruited you gets 20%. These commissions are sent directly by Safaricom

How much commission can a Mpesa sub-agent make in a month?

The amount of money a Mpesa agent makes depends on factors like: –

1. The ratio of mpesa deposits via a vis the mpesa withdrawals
2. Population in an area
3. Mpesa registrations made by subagent

On average a sub-agent operating with a float of Ksh. 30,000 can make an estimated commission of Ksh. 13,000?

Costs of starting a Mpesa sub-agent business 

1. Mpesa float – Ksh. 30,000
2. Rent – Ksh. 3,000
3. Branding – Ksh. 3,000
4. Goodwill for a non-aggregated till – Ksh. 15,000
5. Employee wage – Ksh. 4,000
6. You need an average of Ksh. 55,000 to start a Mpesa – sub-agent store.

This is how Mpesa sub-agent stores work

Mpesa agents recruit sub-agents stores and treat them as their own.

They deliberately fail to register sub-agent shops with Safaricom. This takes away the privilege of sub-agents receiving commissions direct from Safaricom — which now means that agents become bosses to sub-agents.

They decide what to pay sub-agents. It could be anything from 60% commission to 80% but it is mostly 70%.

Disadvantages of not having your line aggregated by Safaricom 

• Agents decide what float they want you to maintain. Often Ksh. 100,000 per sub-agent store
• You lose control of your float as it is managed by the Agent
• If an agent is found on the wrong side of Safaricom operation rules and the till is closed; your float gets locked in too
• Agents charge goodwill to give tills to sub-agents. It could be anything from Ksh. 15,000 in Kisumu to Ksh. 100,000 in Nairobi.

M‐PESA AGENT REQUIREMENTS

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Here’ How the Mpesa Business Works

As a Mpesa agent, your job will be to receive deposits from customers, register customers for Mpesa, and also help them withdraw money when they want. You can get into the Mpesa business as a super-agent if you can maintain a float of KES. 500,000. Or, you can join the business as an Agent/Aggregator

If you join as an aggregator you will be responsible for: –

• Recruiting sub-agents
• Helping sub-agents meet conditions of operations laid out by Safaricom
• Operating several tills

The requirement to become a Mpesa Agent/Aggregator 

1. Be a Limited company able to operate at least 3 agent shops under the same company name
2. The agent must invest Ksh. 100,000 for simex (sim replacement cards)
3. Must maintain a minimum M-Pesa Float of  Ksh. 100,000 per store
4. Agent shops must at least be spread in two different counties

How to Become a Mpesa Sub-agent 

Mpesa sub-agent stores are the typical Mpesa shops you see everywhere in the hood. To become a Mpesa sub-agent, you will be recruited by an Agent and you will operate under them.