MPESA business has numerous advantages and several disadvantages. If you are planning to start the business, here is what you should learn about the cons and pros of doing the business.
Advantages of MPESA business
Profit
MPESA business is regarded as one of the most profitable small capital businesses .In a month, you can make as little as Ksh 15,000 and as much as Ksh 50,000 depending on location and traffic flow.
Joining the business is not regrettable since you will get something to keep you going.
Easy to start
The business requires Ksh 50,000-Ksh150, 000 in capital, a license and a physical location. Unlike other businesses that require several procedures, workers and office equipment, this one is relatively easy to start.
Can be done alongside other businesses
When having an MPESA shop you can also incorporate other businesses, like electronics shop and a general shop.
Low operating expenses
MPESA operating expenses are low-there is also little space required to operate the venture.
Disadvantages of doing MPESA business
Profits share
The profit earned from the business is shared between the business owner and Safaricom, which literary means you are employed by Safaricom.This also implies that you have no control over what you earn because Safaricom can change the proportion of the profit it allows you to pocket.
Flooded
MPESA business is flooded such that within a radius of 20 metres, there are three shops. This makes it hard for an MPESA owner to maximize profits.
Termination of MPESA line
Safaricom can decide to block your MPESA line if you violate their terms. This means you have to tow the line or be phased out.
No growth
If you want to stagnate in business, start MPESA shop. This particular business will earn you almost fixed profits which means no matter how hard you work you won’t expand.
Security
MPESA is one of the most insecure businesses in the country. Since robbers understand you have to keep money in your shop, they sometimes come for it.You are, therefore, required to be vigilant.
