Vodacom Tanzania launched a new M-PESA service “LIPA KWA M-PESA – an integrated payment system for the business community that allows merchants, retailers and distributors, in a far more secure way, to settle payments by using M-PESA.
The new service will improve business and customer convenience by expanding the payment ecosystem from customers paying their retailers, to retailers paying distributors as well as distributors paying whole-sellers cashless through M-Pesa, a quicker and safer mode of payment totally redefining the way businesses handle payments.
Speaking at the event, Kelvin Twissa, Vodacom Tanzania Head of Marketing and Communication said, “Vodacom has been adding value to help streamline and improve the operations of the business community in Tanzania by introducing new products and services that will revolutionize the business community, and moving away from the old traditions of doing business. The new LIPA KWA M-PESA service is quick, secured, integrated, convenient and cashless”.
Businessmen and women in Tanzania prefer to use cash money to buy and sell their products, because it’s quick. However the new era of doing such business transactions, especially those who trade huge sums of money pose a potential threat such as robbery or other life threatening risks. Not only is this expensive to do but also it is time consuming. Considering other inconveniences especially when you want to place orders, buy new stocks or pay third parties.
The new LIPA KWA M-PESA services is revolutionary to businesses, the system is integrated to your M-PESA and bank account, it enables merchants and retailers to transact money instantly, as all transactions are done at the disposal of your fingertips. With the new system, signed up merchants have an enhanced limit of up to Tsh 50 Million in M-PESA unlike the standard M-PESA account which has a limit of TZS 5 million. Distributors can hold up to Tsh 2 Billion on their M-Pesa accounts. This is a great opportunity for the business community in Tanzania to embark into the cashless space.
Twissa goes on to say “This new service is convenient, secure, reliable and cost effective. One does not need to travel or incur other expenses in doing business transactions. It is quick; just a few clicks on your phone and you conclude the business. It is paperless and no Internet services required as it utilizes the Vodacom GSM network.”
How it works is very simple, no investment is required. Once you are registered you can perform all your transactions in a very secure way, the system allows you to view and receive SMS confirmation of every transaction. Confirming to you – the Merchant and customer on the transaction that has just occurred. All settlements are done free into the merchant’s M-PESA account. As of now, more than 24,000 merchants and retailers across the country have already been informed and subscribed to the service.
Speaking at the event Mr. Olestus Mwalongo, a hardware retailer in Buguruni, Dar es Salaam said “I was contacted by Vodacom six month ago to participate in the testing of the service before it was introduced to the market. I have enjoyed the benefits of this service in abundance, first the mechanism of doing it is very simple just like dialing a phone, and second it transforms your life into something new. Now I don’t have to worry on how I am going to transport my money to pay my suppliers like the way I used to do. This service has enabled me to cut down operational costs, now I do my business with leisure, no panicking or running around.”
On his side, Mr. Joseph Mahawi of Mahawi Enterprises, a distributor for Serengeti Breweries said, ‘This service is secure and convenient. I can now receive payments from multiple retailers I supply to instantly and remotely and do my reconciliations more smartly. The reporting system is another great feature of the service. Now I can say my business is running very smoothly and allows me to do other errands and spend more time in growing my business in new directions. Furthermore, I am done with those days of queuing up the whole day at a financial institution waiting to pay my suppliers. Now I can do it at home or anywhere I choose, quite cheerfully’.
Signing up into the service is simple; Merchants and retailers can visit the nearest Vodacom Shop for more information and how to register. Vodacom has set aside a dedicated M-Pesa desk in the call center. In case of any queries all retailers, merchants and customers can reach it 24/7 through dialing 15000 toll free.