Safaricom’s widely popular mobile money platform M-PESA is set to introduce standing orders, marking a major milestone as the first mobile money service worldwide to offer this functionality. This announcement was made by Safaricom’s CIO George Njuguna during the launch of Kenya’s National e-Mobility program.
What are Standing Orders?
Standing orders allow users to schedule recurring automatic payments or transfers from their accounts. This eliminates the need to manually make payments every time for expenses like utility bills, subscriptions, rent, loan repayments etc. Standing orders are common in traditional banking but this will be the first implementation in a mobile money platform.
Also Read: Faraja: Safaricom’s zero percent interest credit facility explained
Automating Financial Life with M-PESA
The standing orders feature will significantly enhance convenience and automation for M-PESA’s over 30 million users. Kenya has one of the highest mobile money usage rates globally thanks to M-PESA’s ubiquity. Safaricom stated that standing orders will also be implemented for healthcare payments and other services to “increase accessibility and affordability.”
Honored to speak at this event, officiated by H.E. Hon Dr. William Ruto. Together, we're combatting climate change and addressing the challenges faced by Boda Boda riders through technology and innovation. 🌍💡 #YouthEmpowerment #SustainableTransportation pic.twitter.com/UaKRUnxyGv
— George Njuguna MBS (@njugunakg) September 1, 2023
This new functionality caters to customer demand for managing recurring payments seamlessly. M-PESA already enables transactions like bill payments through Lipa Na M-PESA and Buy Goods. Standing orders will now automate these processes completely. They will also ease repayment of M-PESA loans like M-Shwari, KCB M-PESA and Fuliza.
Additionally, regular transfers to M-PESA savings and investment services like Mali can be automated. Safaricom’s virtual VISA card also makes online subscriptions easier to pay via M-PESA, which standing orders will optimize.
Unanswered Questions
While the standing orders announcement generated excitement, specifics around functionality, security and launch remain unclear. It is uncertain if PIN input will be required for every automated payment. Safaricom needs to ensure foolproof security to prevent unauthorized transactions.
Also Read: Airtel Money Kenya raises its per transaction limit to Ksh 250,000
The launch date for standing orders on M-PESA is still unconfirmed. Implementation details are also scarce. But this game changing addition to Kenya’s most ubiquitous mobile money platform is set to elevate user experience to new heights.
Safaricom reported 8.8% M-PESA revenue growth in the fiscal year ending March 2023, raking in KES 117.19 billion ($816 million). But macroeconomic factors slowed growth compared to the previous fiscal year. The standing orders feature launch will likely boost revenues moving forward.
