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Safaricom has introduced Shiriki Pay, a new M-PESA service designed to give another person controlled access to your wallet.
The service works between two registered M-PESA users: an Account Holder, who grants the access, and an Authorized User, who can spend within preset limits.
Think of it as a digital debit card where the Account Holder sets boundaries and the Authorized User makes approved payments directly.
With the use of Shiriki Pay, the account holder will be able to set a spending limit, which will ensure that the authorized user will only be able to use the funds within a particular range.
This eliminates the need to repeatedly transfer money or seek approval for every single transaction.
The feature is intended to facilitate easier and safer day-to-day payments for both individuals and households.
How Shiriki Pay Works
Once the Account Holder sets up the service, the Authorized User can make payments directly to merchants via Lipa na M-PESA (Buy Goods & Paybill) and Pochi la Biashara merchants.
This is convenient without exposing the account holder to any form of free access.
However, there are restrictions, and these restrictions are very clear:
- The spending limit must not be passed.
- There is a ban on cash withdrawal and person-to-person transfer.
- Only approved merchant transactions are allowed.
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Setting Up an Authorized User
In order to set up an authorized user, the account holder is required to provide the phone number, name, and contact details of the authoried user.
Safaricom may require other forms of identification to ensure that security regulations are met.
The Account Holder then confirms through the M-PESA App, entering their PIN to confirm.
It is quite easy to manage access to an authorized user’s account, as the account holder may revoke access at any time, while the Authorized User may choose not to use the service.
Importantly, transactions already completed are not reversed once made.
Also Read: Safaricom Confirms Changes Will Not Affect Operations and It Will Remain a Kenyan Company
Responsibilities, Fees, and Who Benefits
The person who owns the account is responsible for all the costs incurred by the authorized person.
The cost of the transaction, as per the M-PESA charges, is applicable, and it is deducted from the wallet of the account holder.
Shiriki Pay has many beneficiaries:
- Parents who want to allow their children to have access to money.
- Students who need to take care of their own expenses.
- Small business owners who want to allow their employees to have access to money.
- Household employees who need to pay their bills or buy foodstuffs.
- Couples who want to share their expenses.
Limitations and Key Considerations
Although Shiriki Pay is convenient in its use, some limitations come with it:
- Only facilitates merchant payments and not cash withdrawal
- No person-to-person transactions
The advantages of Shiriki Pay lie in the spending limits that are controlled, the transaction history that is transparent, and the fact that access can be revoked instantly for security purposes.
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Photo of Safaricom CEO Peter Ndegwa. PHOTO/Safaricom