Safaricom has officially launched the much-anticipated M-Pesa Ratiba feature on its mobile money platform, M-Pesa. This new feature, which was first announced in September 2023, became available on October 1, 2024.
M-Pesa Ratiba allows users to set up standing orders directly from their M-Pesa accounts, marking a significant step towards enhancing user experience and streamlining financial transactions on the platform.
A standing order is an instruction given by a customer to a financial institution to pay a fixed amount of money at regular intervals—be it weekly, monthly, or annually—to a billing account.
This automation scheme, which has long been used in banking systems, eliminates the need for manual input when settling recurring charges.
In a public statement issued on Monday, Safaricom described the feature as a “first-of-its-kind innovation.” The telco emphasized that M-Pesa Ratiba is poised to play a vital role in advancing financial inclusion for the underbanked population and driving Kenya’s transition towards a cash-lite economy.
How M-Pesa Ratiba Works
The new feature enables users to automatically transfer funds from their M-Pesa wallets on a daily, weekly, monthly, or yearly basis to another person, or to pay for recurring bills and subscriptions.
Safaricom has highlighted that the M-Pesa Ratiba offers several benefits, including a simple and seamless setup process and no penalties for cancelled or failed standing order transfers caused by insufficient funds.
Safaricom’s CEO, Peter Ndegwa, stated that this development aligns with the company’s mission to transform lives by providing personalized digital financial services. “M-Pesa Ratiba will allow customers worry-free digital payments for 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,” said Ndegwa.
Types of M-Pesa Ratiba
Safaricom is offering two main modes within the M-Pesa Ratiba feature:
- My Subscriptions: In this mode, transfers are pre-authorized by the customer when the bill is created, and funds are automatically deducted as long as there is sufficient balance in the M-Pesa wallet.
- My Reminder: This mode allows the customer to set reminders for payments, but the transaction must be initiated and completed manually. There are no automatic deductions in this option.
How to Join M-Pesa Ratiba
Users can sign up for M-Pesa Ratiba through two methods:
- USSD: By dialing *334# and selecting option 9. This option supports only the automatic model.
- M-Pesa App: Users can access the M-Pesa Ratiba Mini-App, which supports both automatic and reminder subscriptions.
According to Safaricom, M-Pesa Ratiba is expected to be a game-changer in subscription services and will open up new possibilities across industries such as media, entertainment, software, health, education, and e-commerce.
The telco noted that the standing order feature can be used for a variety of payments, including rent, school fees, insurance, utility bills, and even regular payments for loved ones.
The introduction of standing orders represents yet another step in Safaricom’s ongoing effort to transform the M-Pesa app into a comprehensive financial services hub, further solidifying its role in Kenya’s fintech ecosystem.