Abacus Wealth Management

Battle of the Mobile Money Transfer Service (Updated)

With all the four mobile service providers now allowing you to send money across networks, and each claiming to have the most affordable money transfer rates, I embarked to find out who among the four is indeed more affordable as compared to the rest

Below is a comparison of the money transfer tariffs by the different mobile service providers:

Within Network Transactions

Sending money

From the table above, Yu Cash has proved to be much cheaper as compared to the rest when it comes to sending money within the network. With the rest of the networks having rates of up to KSh 100, Yu Cash has a flat rate of KSh 0 for sending money within the network, though it important to point out that while the rest of the service providers allow you to send up to KSh 70,000 to KSh 100,000, Yu Cash only allows you to send up to KSh 35,000.

Withdrawing Money

Yu Cash has again proved to be cheaper than the rest when it comes to her withdrawal rates.

Cross Networks Transactions 

Here we get to see the introduction of Tangaza, an independent money transfer service that allows you to send money across all the network at a standard rate of KSh 30, though again Yu Cash proves to have the most affordable rates as compared to the rest with zero (0) rates for sending money across the networks. it is important to point out that M-Pesa, Airtel Money and Yu Cash only allow you to send up to a maximum of KSh 35,000 while Tangaza allows you to send up to a maximum limit of KSh 70,000 for the cross network money transfers.

You can send money via tangaza from an agent or through your phone, if you’re registered.

Once you have registered with Tangaza you’ll be able to receive money on your Tangaza account and you can store up to KSh 100,000. below is another comparison of the withdrawal rates that are inclusive of Tangaza.

So, it is clearly evident that while the other mobile service providers deployed their false marketing strategy, yu-cash has proved to be cheaper than the rest.

Other Rates

When it comes to other rates such as Balance inquiry and changing your Personal Identification Number (PIN), Yu Cash again proves to be more affordable as compared to the rest.

While M-Pesa and other money transfer providers have a wide network of cash withdrawal outlets, Yu Cash has partnered with Equity Bank to allow you to with draw your cash from any Equity Bank ATM, which are available country wide, though this comes with a catch. While it is cheaper to withdraw from the local agent points provided by the other money transfer providers, it is more expensive to with draw from the Equity Bank ATMs as illustrated below.

Yu Cash may have the most affordable money transfer transaction rates but their small network of agent outlets is the only hindering factor standing in your way of enjoying these low rates.

Other Charges

In the long run, Yu Cash is most ideal for sending money, both within the network and across networks, since you will not incur any charges, though if you have access to Yu Cash agents, then you will also enjoy their affordable money withdrawing rates.

So, why stay in the expensive networks while there are cheaper one’s available in the market?

UPDATE: 20/09/2012: Paragraph edited to reflect that one can send money from their phone using Tangaza.

 

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