Paypal Launches School Fees Payment Platform in Kenya
Long queues in banks during school opening days will soon be a thing of the past thanks to technology that has paved way for parents to pay fees through mobile phones.
PayPal - an online payment gateway in partnership with Safaricom and some banks have launched a platform that allows one to pay fees directly to school banks accounts through a mobile phone, eliminating the risks associated with sending money to third parties and reducing bank transaction fees.
At the moment, some parents send school fees to head teachers' or bursars' mobile phones then they withdraw and pay it to the schools.
But now, parents can pay the school directly through PayPal's system dubbed Schoolpay at no fee. The schools that have linked their accounts to the web-based platform pay Sh10,000 per term. "We are giving schools one free term and then we will charge Sh10,000 per term," said Agosta Liko, the chief executive officer of PayPal said.
After a parent sends the fee it is first deposited at PayPal's trust accounts or the mobile providers' trust account where it is then transferred to the respective school accounts.
At the moment, Kenya Commercial Bank, Cooperative Bank and CFC hold trusts account.
Liko said Schoolpay will enable over 30,000 secondary and primary schools in Kenya go hi-tech by receiving and managing mobile payments from parents electronically.
Already, more than 90 schools have signed up to offer the service starting next term.
The Schoolpay system will enable schools track money paid for various activities like trips, activity, lunch, easily than the current mode where parents just pay in lumpsum through the bank. It will also enable bursars track fees paid through credit cards and allow those who are abroad to pay fees using Visa, MasterCard and American Express.
Liko said schools will save up to 80 per cent of the current costs incurred in receiving school fees.