Safaricom pays M-Pesa agents through a commission system. The commission rate varies depending on the type of transaction, but it is typically between 1% and 5% of the transaction value. For example, if a customer withdraws Ksh 1,000 from an M-Pesa agent, the agent would earn a commission of Ksh 10.
The commission is paid to the agent on a monthly basis. Agents can track their earnings and payments through the M-Pesa Agent Dashboard.
In addition to the commission, M-Pesa agents also earn a daily float allowance. The float allowance is a predetermined amount of cash that is given to the agent each day to cover customer transactions. The float allowance is not considered a commission and is not subject to taxation.
M-Pesa agents are required to maintain a minimum float balance in their tills. If the float balance falls below the minimum, the agent will be charged a penalty.
M-Pesa agents play an important role in the M-Pesa ecosystem. They provide a convenient and accessible way for customers to make and receive payments, send and receive money, and access other financial services. The commission and float allowance system helps to compensate agents for their services and encourage them to provide a high level of customer service.
Here are some of the factors that affect the commission rate for M-Pesa agents:
- The type of transaction. Some transactions, such as airtime top-ups, have a lower commission rate than others, such as money transfers.
- The location of the agent. Agents in rural areas typically earn a higher commission rate than agents in urban areas.
- The volume of transactions. Agents who process a high volume of transactions typically earn a higher commission rate.
M-Pesa agents can increase their earnings by:
- Processing a high volume of transactions.
- Offering a variety of services, such as airtime top-ups, bill payments, and money transfers.
- Maintaining a high level of customer service.
- Promoting M-Pesa to their customers.
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