M-Pesa, Kenya’s leading mobile money service, has introduced a new payment feature called Ratiba, enabling subscribers to set up standing orders directly from their e-wallets. This move aims to streamline financial transactions and enhance the user experience, especially for those without access to traditional banking systems.
A standing order allows users to automate recurring payments, such as rent, school fees, utility bills, or subscriptions, by setting a fixed amount to be transferred at regular intervals—daily, weekly, monthly, or annually. Traditionally a feature of banking systems, M-Pesa’s introduction of standing orders through Ratiba marks a major step toward simplifying digital payments in Kenya and promoting financial inclusion.
In a public statement released earlier this week, Safaricom, the parent company of M-Pesa, hailed Ratiba as a “first-of-its-kind innovation” that would advance Kenya’s journey toward a cash-lite economy. The feature is seen as a key tool for improving financial inclusion, particularly for underbanked populations who rely on M-Pesa for their financial needs.
“The feature allows users to automatically transfer funds from their wallets to another person or to pay recurring bills or subscriptions without needing to manually initiate each payment,” the statement from Safaricom explained. One of the notable advantages of Ratiba is that users will not face penalties for cancelled or failed transfers due to insufficient balances—a common issue with automated payments.
Transforming Digital Payments
Safaricom’s CEO, Peter Ndegwa, stated that the launch of M-Pesa Ratiba aligns with the company’s mission to deliver personalised digital financial services that enhance customers’ lives. “M-Pesa Ratiba will allow customers to make worry-free, automated payments for their regular bills and transactions. We continue to innovate on the M-Pesa platform, giving our customers more visibility, control, and security over their financial wellness,” Ndegwa said.
The setup process for Ratiba is designed to be simple and user-friendly. Customers can opt into the service by accepting the terms and conditions through their M-Pesa PIN. From there, they can select the standing orders they wish to create—whether it’s sending money to loved ones, paying monthly bills, or subscribing to services.
Expanding M-Pesa’s Financial Ecosystem
Safaricom sees Ratiba as a key enabler for driving subscription-based services across sectors like media, entertainment, software, technology, health, education, and e-commerce. By automating payments, Ratiba can help businesses grow their subscription revenue streams and improve customer retention.
“With M-Pesa Ratiba, users can set up regular payments for a variety of needs—from rent and school fees to insurance, newspaper subscriptions, or utility bills—making financial management simpler and more convenient,” Safaricom noted.
The introduction of Ratiba is part of Safaricom’s broader strategy to evolve the M-Pesa platform into a comprehensive financial services hub. Since launching the M-Pesa Super App in 2020, Safaricom has sought to emulate the success of China’s WeChat by integrating mini-apps that provide users with a range of services in one platform. While the initial target was to integrate 100 mini-apps by the end of 2023, the company has so far onboarded over 80.
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