Mobile money services have become indispensable in Kenya, with platforms like M-PESA, Airtel Money and T-Kash facilitating easy transfer of funds for millions of users daily.
However, the transfer fees charged by different providers have emerged as a key concern.
We take a closer look at the transfer fees charged by NCBA Loop and M-PESA to help you make informed decisions.
Introduction
Mobile money transfer enables users to send and receive money conveniently using their mobile phones. M-PESA pioneered this service in Kenya and has remained the dominant player.
However, newer services like NCBA Loop have come up with competitive offerings.
A key factor for users is the costs incurred when moving money between mobile wallets or from bank accounts to mobile wallets.
We discuss the transfer tariffs below.
NCBA Loop Mobile Money Transfer Fees
NCBA Loop offers bank account holders the ability to transfer money directly to M-PESA and other mobile wallets like Airtel Money and T-Kash.
Here are the transfer fees applicable:
- KES 0 for transfers between KES 50 – 100
- KES 6 for transfers between KES 101 – 500
- KES 12 for transfers between KES 501 – 1000
- KES 18 for transfers between KES 1001 – 1500
- KES 30 for transfers between KES 1501 – 2500
- KES 36 for transfers between KES 2501 – 3500
- KES 48 for transfers above KES 3501
An important advantage is that deposits from M-PESA to NCBA Loop are free.
Therefore, Loop account holders can deposit to their bank accounts for free.
M-PESA to M-PESA Transfer Fees
For transfers between M-PESA accounts, the fees are structured as follows:
- Free for transfers below KES 100
- KES 6 for transfers between KES 101 – 500
- KES 12 for transfers between KES 501 – 1000
- KES 22 for transfers between KES 1001 – 1500
- KES 32 for transfers between KES 1501 – 2500
- KES 51 for transfers between KES 2501 – 3500
- KES 55 for transfers between KES 3501 – 5000
- KES 75 for transfers between KES 5001 – 7500
- KES 87 for transfers between KES 7501 – 10000
- KES 97 for transfers between KES 10001 – 15000
- KES 102 for transfers between KES 15001 – 20000
- KES 105 for transfers between KES 20001 – 35000
- KES 105 for transfers between KES 35001 – 50000
- KES 105 for transfers above KES 50001
M-PESA charges grow progressively higher with increased transfer values.
Comparison of Fees
For transfers below KES 1500, M-PESA offers cheaper fees than NCBA Loop.
However, for higher transaction values, Loop becomes the more affordable option.
For example, transferring KES 4000 on M-PESA would cost KES 55 compared to KES 48 on Loop.
Loop’s flat fee of KES 48 for transfers above KES 3500 contrasts with M-PESA’s continually growing charges that can go up to KES 105.
Therefore, Loop is cheaper for high-value transactions.
Wrap!
When choosing a mobile money transfer platform, fees are an important consideration alongside factors like agent network reach, convenience, transaction limits and stability.
NCBA Loop presents itself as a cost-effective option especially for larger transfers above KES 1500.
However, M-PESA continues dominating the low-value transfer segment.
Assessing your specific transaction patterns can help pick the optimal service based on tariffs.
Read also: