Safaricom, Kenya’s largest telecommunications company, has introduced a new feature called M-PESA Ratiba for its mobile money platform, M-PESA. The feature allows users to set up standing orders directly from their M-PESA wallets for recurring transactions and bill payments.
M-PESA Ratiba enables automatic transfers on a daily, weekly, monthly, or yearly basis to other individuals or for paying bills and subscriptions. According to Safaricom, the feature does not incur penalties for cancelled or failed standing order transfers due to insufficient balance.
Safaricom CEO Peter Ndegwa commented on the launch, stating, “Safaricom continues to transform lives through delivery of differentiated and personalized digital financial services and experiences to our customers. M-PESA Ratiba will allow customers worry-free digital payments of bills and transactions. We continue to innovate on the M-PESA platform to give our customers more visibility, control and security around their financial wellness.”
The company claims this is the first mobile money feature of its kind to bring standing orders to mobile devices. Safaricom suggests it could play a role in enhancing financial inclusion among the underbanked population and contribute to the country’s progress towards a cash-lite economy.
Potential applications for M-PESA Ratiba include setting up regular payments for rent, school fees, insurance, subscriptions, utility bills, and transfers to family members. The feature is now available on the M-PESA App’s Financial Services tab and through USSD by dialing *334# and selecting option 9.
To use M-PESA Ratiba, customers must review and accept the terms and conditions, then opt in using their M-PESA PIN. They can then set up standing orders for sending money, paying bills, or purchasing goods and services.
The M-PESA ‘super app’, launched in 2020, now includes over 80 mini-apps offering various financial services. The addition of M-PESA Ratiba expands the platform’s functionality, potentially impacting sectors such as media, technology, health, education, and e-commerce by facilitating subscription-based services.
As with any financial service, users are advised to review the terms and conditions and consider their financial situations before setting up recurring payments.
