Mpesa is actually 6 times more expensive than paypal

[RVtitem]

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The well acclaimed negro fleecing machine, MPesa, even after lowering its tarrifs uncountable number of times, is still very expensive. Negro has no option but succumb to yokes of a monopolist. Techies, is it possible to automate paypal to run on dumb phones like Mpesa. And launch paypale shops instead?

I just send for example 10 000 KES at a cost of 60 KES. The recipient withdraws cash for free. On the other fleecing hand, mpesa  would cost a 95+260 (send + withdraw). At this instance Mpesa is a whopping 6 times more expensive than paypal.
http://www.safaricom.co.ke/personal/m-pesa/my-m-pesa-account/tariffs

[Kim Jong-Un's Pajama Pants]

Monopolies will do that.  It's possible to get paypal to work with SMS.  The question is whether it's worth it.  SMS has been around for sometime, but it could become obsolete in few years or even months.

[RVtitem]

Monopolies will do that.  It's possible to get paypal to work with SMS.  The question is whether it's worth it.  SMS has been around for sometime, but it could become obsolete in few years or even months.

I highly doubt. sms obsolescence is not likely to happen. Equity also made indications that it would it would join safaricom in eating by not offering lower rates. the goodness of paypal is it's versatility and availability of pluggins for ecommerce. It's a matter of timing and execution.

[anarchista]

Mpesa have always operated on shylock rates. Those tariffs can run to over 10% of the amount transacted. Yet agents are closing shop everyday!

Equity and Nation have both tried to run paypal accounts, but these were agency accounts and were closed down (I think Equity is back on track) over regulatory, money laundering issues. With paypal you MUST have a bank account which is where mpesa comes in. The great unbanked in Kenya can win you an election.

And these unbanked will never complain about the rates because they are mainly recipients of what is essentially free money.

However, I did notice several businesses although advertising the lipa na Mpesa service are turning away from using it and sending their clients to withdraw cash from nearby agents with not a few running their own agency. It would suggest that transaction fees are eating into their profits.

Equity has proposed a 25/- ceiling which suggests that they are going for volume. Should they launch on the thin sim, safaricom profitability will take a major hit and mpesa days are numbered. Their key to holding the market has been the distribution network but that network is now free to all users following the cancellation of Safaricom exclusivity contract. If Equity launch on Monday, they can have 100,000 agencies by Sunday!

Personally, I detest Equity as much as Safricom, but I'll be happy to see the day.

[Kim Jong-Un's Pajama Pants]

Monopolies will do that.  It's possible to get paypal to work with SMS.  The question is whether it's worth it.  SMS has been around for sometime, but it could become obsolete in few years or even months.

I highly doubt. sms obsolescence is not likely to happen. Equity also made indications that it would it would join safaricom in eating by not offering lower rates. the goodness of paypal is it's versatility and availability of pluggins for ecommerce. It's a matter of timing and execution.

in fact there are paypal SMS applications already.  Here is one https://www.paypal.com/us/webapps/mpp/mobile/mobile-text.  As mentioned by anarchista, the paypal model is completely different.

I exaggerate on SMS.  I think it is safe as long as smartphone penetration is limited.  I know it doesn't have the best security.

[RV Pundit]

Mpesa is only comparable to Western Union..send money anywhere and cash money anywhere there is an agent. Moving money across virtual accounts like paypal or equity should cost  nearly nothing. But remember to cash paypal in kenya you'll pay an arm and a leg.

Mpesa i think is fairly priced. Out of the transaction fee..safaricom has to pay taxes..they have to deduct the cost of running mpesa data centers.... agents who take huge risk to handle cash (including fake money and thugs) have to get something..many of them are complaining...

Lipa na Mpesa i think are really flat rated.

It easy to complain but facts are stubborn. Mpesa is popular because it cheaper than any other alternative out there. Maybe when bank agent banking spread to every corner would they challenge MPESA...as of now if somebody was to send me money via my account..i still have to drive to nearest ATM to cash it.

[vooke]

MPesa is the most widely accessible platform.
They have paid to be boss over negro through R&D and agencies
We should cheer Equity's feeble attempt to take Safcon head on

[Olekoima]

The well acclaimed negro fleecing machine, MPesa, even after lowering its tarrifs uncountable number of times, is still very expensive. Negro has no option but succumb to yokes of a monopolist. Techies, is it possible to automate paypal to run on dumb phones like Mpesa. And launch paypale shops instead?

I just send for example 10 000 KES at a cost of 60 KES. The recipient withdraws cash for free. On the other fleecing hand, mpesa  would cost a 95+260 (send + withdraw). At this instance Mpesa is a whopping 6 times more expensive than paypal.
http://www.safaricom.co.ke/personal/m-pesa/my-m-pesa-account/tariffs

Yes expensive, but convenient.