Safaricom is seeking approval from the Central Bank of Kenya (CBK) to double the M-Pesa daily transaction limit to KES 280,000 from the current KES 140,000.
Analysts view this positively in terms of a possible impact to volumes, although on a minimal scale.
M-Pesa ARPU stood at KES 284 in 1H19 while average number of transactions per user per month stood at 12, implying an average revenue per transaction of KES 23.67. This points to majority of transactions being below KES 3,500.
An increase in the transaction limit to support ARPU numbers is expected, further supporting margin improvement on account of slower increment in fixed costs as M-Pesa margins improve.
A positive impact on Lipa na M-Pesa transactions is also expected, with a widening of transaction limit pointing to increased use of Lipa na M-Pesa for higher range purchases. However, maximum M-Pesa float stands at KES 100,000.