Safaricom Introduces "Lipa na Data" Payment Option to Reduce Liabilities

Safaricom, the leading telecommunications company in Kenya, has unveiled a new payment option aimed at reducing liabilities by allowing its millions of customers to pay for goods and services using their Internet data balances.

The service, known as "Lipa na Data," enables users with 5GB or more of data balance to make payments at various shopping outlets using Paybill or till numbers. To initiate a payment, customers can simply dial *544*34#. This feature is accessible to both Safaricom post-pay customers with a data balance of 5GB and above, as well as prepaid customers with "no expiry" bundles exceeding 5GB.

The introduction of "Lipa na Data" follows Safaricom's recent efforts to increase the redemption of its loyalty program, known as Bonga Points, in order to unlock substantial revenue opportunities.

Upon dialing the payment request code, users are provided with the bill amount in Kenyan shillings, displayed as its equivalent in data bundles. They are then prompted to either proceed with payment or decline the transaction. For instance, a payment of KSh500 would be equivalent to 7,692.21MBs (7.7GB), while KSh2,000 would be equivalent to 30,769.23MBs (30.8GB).

The prompt message reads, "You can make a payment of KSh500 with 7,692.21MBs. Proceed to pay: 1: Yes 2: No 0: Back."

If a user's data balance falls below the required 5GB, they will receive a notification indicating their ineligibility for the service.

The launch of "Lipa na Data" complements the range of existing payment plans offered by Safaricom's M-Pesa e-wallet. These include direct payments from users' deposits and the Fuliza overdraft service, which assists customers with insufficient funds to cover their purchases.

Additionally, Safaricom operates the "Lipa na Bonga" service, allowing users to redeem their loyalty points and use them to settle cash bills.

As part of its revenue optimization strategy, Safaricom has recently undertaken various significant initiatives. These include expanding the fifth-generation (5G) network coverage to all 21 counties in Kenya in April and introducing the Fuliza overdraft service for businesses in the previous month.

Lipa na Data is also a sign of the growing importance of mobile money in Kenya. Mobile money is already used by millions of Kenyans to make payments, send and receive money, and store their savings. The launch of Lipa na Data is likely to further boost the popularity of mobile money in Kenya and make it even more convenient for people to use their phones to make payments.