Safaricom Increases Charges to Equitel Customers

Money Transfer

Safaricom has moved to discourage transfer of money to third parties on its M-Pesa platform by subscribers of Equity Bank's Equitel mobile payment service through new tariffs.

Safaricom says in correspondence seen by The EastAfrican that the increase will help in weeding out fraudulent transactions to third parties, especially those that are not registered with either M-Pesa or Equitel.

"It is our advice that you [Equity Bank] strongly consider only facilitating bank to M-PESA transfers to a customer's own M-Pesa Account in order to discourage the occurrence of the aforementioned incidents," writes Rita Okuthe, Safaricom's general manager in-charge of enterprise business.

"In the event that you still prefer to facilitate third party transfers as a service offering then these transfers may still be pursued but subject to revised tariff rates," Okuthe warns in the letter dated July 9 and addressed to Equity Bank.

For transfers from the bank to a customer's M-Pesa account, however, Safaricom has introduced discounted rates of Ksh15 (15 US cents) for amounts ranging from Ksh50 ($0.47) to Ksh1,000 ($9.5) and Ksh22 ($0.22) for amounts between Ksh1,001 ($9.51) and Ksh70,000 ($665.37).

Tariffs for third party transactions have been increased on a graduated scale from Ksh22 for small amounts falling between Ksh50 and Ksh1,000 to a high of Ksh110 ($1.1) for amounts between Ksh20,001 ($190.11) and Ksh70,000.
Source: The East Africa 26 August 2015