How Profitable Is Mpesa Business, 2022, Everything You Need To Know

If you have been using M-Pesa then you will appreciate how profitable the Mpesa business is in today’s financial world.

Technology has helped to modify a lot of things in our society today.

This is because technology has completely changed the way we socialize, learn, work, and live, including how we purchase items, whether through online shops or sales outlets.

Unlike in the past, where people go to the market with bulk cash, with the help of mobile money payment services such as m-Pesa, one can easily send money or pay for goods and services without holding physical cash.

Read this guide: How Does M-Pesa Agents Make Profit?

M-Pesa business is profitable to both small and large enterprises because it helps increase sales and lowers the cost of operations. It also ensures proper record keeping.it also makes paying for items much more quickly and convenient for your clients.

For example, a customer can walk into your store without cash, but with the aid of their Mpesa account, they can simply pay for whatever they bought.

M-Pesa business helps traders and customers reduce counting of money and helps companies to develop and maintain a better cash flow management system.

Startup Capital and Profit Margin of M-PESA BUSINESS

Running an M-Pesa outlet or shop is one of the most lucrative and profitable businesses in Kenya.

M-Pesa business is one of the businesses in Kenya, which has a very high-profit margin and requires little capital for a startup.

Some individuals in Kenya also setup this M-Pesa business as a side hustle. You can also run this business and still be able to go to school or attend lectures.

The exciting aspect of this M-Pesa business is that it can be incorporated into any other enterprise. Running an M-Pesa business would not affect the functionality of your other businesses.

Some people in Kenya see it as a form of investment, which is definitely true. Also, being a profitable venture doesn’t necessarily mean you need a degree to run an M-Pesa business, although a good level of education can also be an added advantage.

The M-Pesa business is so profitable that almost everyone in Kenya wants to part take in it. In a month of diligently running an M-Pesa business, you can make a profit from ksh15000 to as much as Ksh 50,000.

However, the profit margin depends on factors such as your location, traffic, and the number of customers you have.

Another important factor which would determine your profit margin is the amount of cash you have at hand.

Customers always run to m-Pesa outlets that always have enough money to meet their demands compared to m-Pesa outlets, which always run of cash.

Related article: How To Register For M-Pesa In Kenya.

Steps to Setup M-Pesa Business And Make Profit

Every business requires caution and a certain amount of capital to start up. To start up the Mpesa business in Kenya, you would require a capital of about Ksh50, 000 to Ksh150,000.

But knowing how profitable the Mpesa business is, you need to invest with that kind of money.

The most crucial step is that you have first to get registered by Safaricom. You would also need a license from Safaricom and a good physical location (preferably a place that is accessible to people).

Furthermore, you need to provide Safaricom with valid documents such as business permits, which would cover for M-Pesa outlets, VAT, tax certificate, and authentic forms of identification and other relevant documents.

You would also be required to fill the M-Pesa agent form, which would be given to you at the Safaricom head office.

At the head office, you would also be required to fill the M-Pesa agent store application form. Ensure you go through the form thoroughly to understand the terms conditions you must abide by as an M-Pesa agent.

It is important to note that as an m-Pesa agent, you a direct employee of Safaricom, and all profits made in the business are to be shared by both parties.

Upon successful registration and acceptance as an M-Pesa agent, you will be given a confidential till number.

One remarkable aspect of this business is that you can run your m-Pesa business solely by yourself, or you can employ someone with proper educational qualifications to do so for you.

Besides, if you do not have enough capital to start your Mpesa business, you can register as a sub-dealer, which would put you under a Safaricom licensed Mpesa agent.

To register as a sub-dealer, you would need a capital of 20,000 Ksh to 40,000 Ksh.

If you want to become M-Pesa agent then read this: Steps To Become M-Pesa Agent In Kenya.

Challenges Associated With M-Pesa Business

Every business comes with its risks and challenges. For the M-Pesa business, one of the few challenges is that it is a highly competitive business in Kenya.

It is flooded, M-Pesa shops can be found nearly on every corner in the streets of Kenya. That shows you how profitable Mpesa business has been.

This business also has a lot of risks because people know you handle a lot of cash, which makes a target for criminals. Before you set up an outlet for your M-Pesa business, get the right information about the security level of that location.