What is MoMo Pay? MoMo pay is a service that allows merchants receive payments and services using MTN Mobile Money. It is however not limited to merchants only as customers too, can use it to pay for the same goods and services whose payment is received by the merchants.
The most interesting bit is that customer use the service for free and incur no extra charges associated with MoMo Pay. It is however not the same case for the merchants (More on this later) as they are added charges depending on the status of the merchant.
How to use MoMo Pay.
Both customers and merchants have to dial *165*3# to access MoMo Pay on the Mobile Money menu. As for the customers, they have to input the the merchant code (we assume this will be displayed on the merchant counters or point of sale machines) to complete payments for goods and services.
Merchants they have to go an extra mile and register with MoMo Pay by filling in an application form and also provide additional business details.
Who are the merchants?
These are quite many but the proper categorization we were able to come up almost include every section of the economy both formal and informal. These include; Auto-parts shop, Bars, Cinema (including the local bibanda), Clinics/Hospitals, Boutiques/Clothing shops, Kiosks/Duukas, Electronics shop/store, Hardware outlet, Market vendor, Pharmacy, Eateries (Takeaways, Icecream parlours, bakeries, cafes, roadside chicken, Rolex stands), Salon/Barbershop, Stationery shop, Supermarket, Transport (Boda-bodas, Matatu, Cab).
What are the charges for Merchants.
Now that you know the kind of businesses eligible for being MoMo Pay merchants, it is about time we broke what charges apply to either status of merchants, that being formal and informal ones.
As outlined earlier, customers use MoMo pay for free while formal merchants will be charged 2% of the payment received while informal merchants will be charged 1% of the payments received.
Here are some of the benefits of using MoMo Pay
First and foremost, customers use the service for free to pay for their good sand services.
MoMo pay reduces the need to carry physical cash and its associated risks. Money is held on one’s Mobile Money account.
Issues of small change amounts are checked.
Merchants can make additional revenue for merchants who earn commission by selling airtime or making payments for customers
Both customers and merchants can make withdraw and deposit funds from their bank accounts.
