Nov 6, 2012

The 6 domains of M-PESA payments - How Kenyans pay with M-PESA

P2P– P2P (person-to-person) M-PESA payments includes domestic remittances and cross border remittances. However many businesses transaction among micro and small enterprises occur in this format. P2P M-PESA payments account for a large percentage of M-PESA usage.

POS – The M-PESA service for POS payments is known as Buy Goods. Buy Goods payments are for immediate purchases for goods and services from a merchant, that is, face-to-face C2B (customer-2-business) payments. Buy goods is suitable for restaurants,retailers,pubs,pharmacies etc

Bill payments – The M-PESA service for bill payments is known as Pay Bill.This service is for non-face-to-face C2B payments. The customer has an official relationship with the organization they are making the payment to and usually have a prescribed account number which helps the organization identify the payer. Pay bill payments are made within a fixed timeline e.g paying your electricity bill monthly to Kenya power.

eCommerce-Payments made online for purchases of goods and service. Includes eRetailing,online travel, and purchase of digital content. The Pay Bill service is being used in eCommerce.

B2C-Business-to-customer payments (B2C) M-PESA service is known as Bulk payments. This service enables organizations to send money by M-PESA to many people who may be widely dispersed. Organizations use this service for promotional payments,field staff disbursements,salary disbursements and dividend payments.

M-PESA does not yet have a B2B (business-to-business) payments service. B2B payments include payments from buyer to supplier, and intracompany payments.

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