New M-Pesa feature lets you set up a standing pay order

M-Pesa has launched a new payment feature that will allow subscribers to set up standing orders directly from their e-wallets as the telco moves to enhance user experience and streamline financial transactions on the popular service.

Predominantly used in banking systems, a standing order is an instruction that a customer gives to a financial institution to pay a fixed amount of money to a billing account in regular intervals (weekly, monthly, or annually), in an automation scheme that eliminates the need for manual input when settling recurring charges.

In a public communiqué dated Monday this week, Safaricom termed the feature dubbed Ratiba a 'first of its kind innovation' that will play a key role in enhancing financial inclusion among the underbanked population while advancing the country's progress towards a cash-lite economy.

"The feature allows users to automatically transfer funds from their wallet on a daily, weekly, monthly, or yearly basis to another person, or to pay recurring bills or subscriptions," states the telco.

"Other benefits include a simple and seamless setup process and no penalties incurred for cancelled or failed standing order transfers that may occur due to insufficient balance."

Safaricom chief executive officer Peter Ndegwa said the development is in line with the firm's commitment to transform lives through delivery of differentiated and personalised digital financial services and experiences to its customers.

"M-Pesa Ratiba will allow customers worry-free digital payments of 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 Mr Ndegwa.

To get started, the telco has instructed customers to review and accept the laid down terms and conditions before opting in using their M-Pesa Personal Identification Number (PIN). They will then be able to choose which standing orders to set up, including those for sending money to family and friends, paying regular bills, or purchasing goods and services.

According to Safaricom, the provision will play a key role in driving subscription services, as well as in opening new possibilities in sectors that span media and entertainment, software and technology, health and wellness, education, and e-commerce while transforming customer experiences within the financial services ecosystem.

"With M-Pesa Ratiba, you can set up a regular payment schedule for rent, school fees, insurance, newspaper subscription or other standard utility bills payment as well as upkeep for your loved ones," notes the telco.

The introduction of standing orders builds upon Safaricom’s efforts to transform the M-PESA app into a comprehensive financial services hub.

Launched in 2020, the M-PESA super app aims to emulate the success of China’s WeChat by integrating various mini-apps.

While the initial target was to onboard 100 apps by the end of 2023, only slightly over 80 have been integrated thus far.

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