Safaricom airtime retailers are slowly losing out as Safaricom intensifies campaigns for M-Pesa airtime top up. Small scale retailers are arguing that M-Pesa is taking up a large role in the distribution and retailing of airtime, threatening to drive them out of the market.

Safaricom has in the recent past encouraged its subscribers to top-up using M-Pesa, introducing exciting offers such as  10 to 50 per cent bonus airtime to subscribers topping up using M-Pesa. Such offers make it difficult for subscribers to resist, in the long run favouring M-Pesa as opposed to small scale airtime retailers.

Indeed, M-Pesa has not only made it easy to buy airtime, but also availed it 24/7 as you can simply and conveniently turn to your M-Pesa account when in quick need of airtime.

With increase in M-Pesa airtime top up, Safaricom is making huge savings on scratch card printing costs, distribution and commissions paid to retailers. Further increase in M-Pesa airtime top up is poison to the businesses of many small scale airtime retailers.

In a move expected to favour retailers, airtime sellers now want Safaricom to make provisions that allow them to make commissions on the services paid for using M-Pesa.

Safaricom on the other had has said it will continue promoting M-Pesa airtime purchases, maintaining that its retailers were not losing out because most of them double up as M-Pesa agents and would continue to get revenue from M-Pesa deposits and withdrawals that are expected to continue growing.

One question arises though, what will happen to small scale airtime retailers who don't double up as M-Pesa agents? They will surely lose out.

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