What Exactly is M-Pesa and How Does It Work?


Recently M-pesa has been getting all the major hype. It has expanded its popularity across the globe and its all for good reasons. Talking about solving real life situation, over a long period of time people around the globe have been trying to figure out ways to easily and efficiently send money to persons very far away in a matter of seconds. Though there are other money transfer systems, most common is the Western Union Money Transfer or through inter-bank wire transfer. All these systems work very well but one of the major setbacks has always been the time it takes to complete these transfers, and this is where M-pesa comes in. Just make sure you read this article thoroughly so don’t miss out on any of M-pesa’s many benefits.

What Exactly is M-pesa and How Does It Work?

Simply defined, M-pesa is a mobile money transfer application, a service from the Safaricom Network Company. Many Kenyans are familiar to this application because it is widely used in the country.

Truthfully speaking I think M-pesa is the driving force behind the mobile revolution that has swept across the African continent.

Generally, this is how M-pesa works.

M-Pesa Registration

First, you have to own a registered Safaricom sim card. But that is not all; you will also need to register to be able to use M-pesa. It is free and can be done at any M-pesa agent. All you will need is a copy of your identification card. When the registration is complete, the network will send an updated menu to your phone and you’ll be good to go.


Loading Money to M-Pesa

Once you have registered for the M-esa you can instantly load up some cash to your M-pesa account. You hand the agent the amount you want deposited. The agent will do this process from his or her end. You will receive a text message to your phone from M-pesa confirming the deposit transaction. Or money can be loaded to your phone by another person could be your relative, a friend or even a business associate.

Sending Money with M-Pesa

When you have money in your account you can easily send it to any M-pesa user of your choice. Just go to the M-pesa menu on your phone then select the ‘Send money’ option, and then enter the phone number of the person you wish to send money to. You will be prompted to enter your M-pesa pin, as soon as you press Ok. Your transaction is processed and you receive a confirmation message including the name of the recipient. The recipient also receives an alerting text message confirming the amount and sender.

Paying Bills with M-Pesa

Another powerful resource is the fact that you can use M-pesa to pay your bills. This made the whole process of payment of bills and buying fight ticket a lot simpler. Just the same way you send money to other users, with codes corresponding to particular company you can send money to pay for particular services. Thanks to this, we can avoid long queues and save the time for other things.


Withdraw Money from M-Pesa

With money in your account you can easily withdraw it into tangible cash. You will just visit an M-pesa agent then proceed to transact by choosing the ‘Withdraw cash’ option, enter the agent number which is always at the M-pesa agent where you are, and then the amount and finally your M-pesa pin. After the transaction is through you will receive a confirmation text message and the agent hands you the withdrawn amount. Your final step is to sign the transaction sheet and you are through.


This is a recent addition to the M-pesa menu. M-shwari is a system that works on top of M-pesa. Users have the ability to send money from their M-esa account into their M-shwari account as savings. These savings can lead to the M-shwari user receiving a loan once in a while.

M-pesa is also linking up with banks and allows user to link-up their bank accounts and their M-pesa account. Through this people can now bank at the comfort of their seats. One can send or withdraw money from his or her bank account through his or her M-esa account.

With the height M-pesa has already reached it is only bound to get higher. It is amazing how money transfer has been made easier, all I can say is that it is one of the best system available and only the sky is the limit of what can be achieved from such fields.