Last week, we carried the news of Safaricom’s new MPESA rate and posed the question whether the new rates were more expensive. The general consensus was that they were, but a few people appreciated the lower limits, allowing one to send as low as 10/-, the fact that the withdrawal minimum is 50/- aside.
However, we also observed something interesting:
On closer inspection, we realized there was indeed jump between bands that does not makes sense. Sending 100/- to a registered MPESA user will cost you 5/-, but sending 101/- to the same user will cost you 25/- Based on this observation, we’ve worked out a way to minimize your costs while sending money.
If you are sending between 101/- and 449/- do not send the money as a lump-sum. You are better of breaking it down into 100s. For instance, to send 120/-, do not send 120/- at once as it will cost you 25/-. Send 100/-, then 20/- which will come to 8/- in charges. If you are sending 400, send 100/- four times to get a cost of 20/-, rather than 25/-
The table below shows our “Oustmart MPESA” tariff
Unfortunately, as you can see, this ‘break down’ tariff only works for figures between 101/- and 449/- and for the 401 to 449 bracket, the saving is only 2/-
Above 500/-, breaking down the payments will make sending more expensive.
Will you implement the breakdown tariff to save costs? What other loopholes have you come across?