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 sub-agent is recruited to work under the agent but; his line is aggregated — meaning the sub-agent shop is registered directly by Safaricom
The Sub agent then gets a till to carry out Mpesa transactions
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
You need to maintain a minimum float of Ksh. 30,000
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: –
The ratio of mpesa deposits via a vis the mpesa withdrawals
Population in an area
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
Mpesa float – Ksh. 30,000
Rent – Ksh. 3,000
Branding – Ksh. 3,000
Goodwill for a non-aggregated till – Ksh. 15,000
Employee wage – Ksh. 4,000
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.
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: –
Helping sub-agents meet conditions of operations laid out by Safaricom
Operating several tills
The requirement to become a Mpesa Agent/Aggregator
Be a Limited company able to operate at least 3 agent shops under the same company name
The agent must invest Ksh. 100,000 for simex (sim replacement cards)
Must maintain a minimum M-Pesa Float of Ksh. 100,000 per store
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.