Have you ever thought about starting a mobile money Business in Zambia? Opening a Booth or Shop? Here is ‘full package’ information about what you need to know about the mobile money business in Zambia.
You are right, it is necessary to investigate effectively before you venture into any type of business. I am happy that you have come to the right place for knowledge gain about mobile money business. I strongly believe that at the end of this article, you will be able to get many answers to your questions and decide whether you can venture into mobile money or not.
About the Author:
First things first, it is vital that you must know who the author is, isn’t it? Well let me give you a summary of who I am in terms of the subject being discussed.
I started Mobile money Business in the fourth quarter of the year 2019 a few months after I got married. Mobile money business was just a part time Job because by then I was a class teacher at a well-known private school in Mpulungu district, Northern Province of Zambia.
During my initial stage I had no Agent SIM Card, I just placed a Mobile Money Booth at an average traffic location… selling talk time/Airtime was the only activity I was doing for a month.
In the second month, I received some officials from Kasama Head Quarters who were ‘Creating’ Zamtel Agent SIM cards for free. I acquired one for free.
Remember this is just a summary, fast forward, in 4 months’ time i managed to acquire; Zamtel, MTN and Airtel Agent SIM cards for mobile money business. [Nowadays, it could only take you less than a week to acquire all the three SIM cards].
The mobile money business went well to the extent that I decided to resign from where I was working with a view to spend much time at my Mobile Money Booth …and I did.
In the 2021 I managed to become an Agent of the following Mobile Money Services:
– Zamtel
– MTN
– Airtel
– 543 Konse Konse
– SPENN (no longer available)
– Zanaco and
– ATRAS MARA
In three years, I managed to add FNB, MTN Super -Agent and 2 Zamtel Super -Agents. During this period my earnings in Mobile Money Business were ranging from K9000 to K11000 monthly! Some of the readers may not agree with me but my explanation and guidelines on how mobile money business is done will be an evidence.
The only challenge I found in this business of mobile money is the mysterious loosing of money! I will give the details soon and keep reading.
What is Mobile Money?
Mobile money is an e-wallet system programmed for the purposes of money transactions by network providers (Airtel, MTN and Zamtel) and money institutions AKA third parties (Banks, Kazang, Zoona, 543 Konse Konse)
What is Mobile Money Business?
This is a business activity which involves money transactions such as withdrawals, deposits, bill payments, selling of direct talk time and many more for the sake of earning a monthly commission.
How Exactly Does Mobile Money Business Work?
Ok, so for beginners here is the process on how the mobile money business works;
Mobile money mainly involves three (3) parties:
1st Party: A Customer (the one depositing or withdrawing his or her own Money)
2nd Party: Registered Mobile Agent (the middle – man between a customer and mobile money service provider e.g. Airtel, he or she earns a commission for every successful transaction done)
3rd Party: Mobile Money Service Provider ( Airtel, MTN, Zamtel, Zanaco, ATRASMARA, FNB and others)
Let say a customer visits a Booth with a view of withdrawing K1000 from Airtel Money, an Agent will give a customer his or her Agent line/code (the Airtel number/code where the money should be withdrawn).
A Customer will withdraw K1000 and Airtel money service will deduct K20 (withdrawal charge) and K1000 (amount withdrawn) from the customer’s main account.
The withdrawn money will reflect and be credited in an Agent’s Account (an Agent will receive a message showing; the amount withdrawn, the name of a customer, transaction id, time and the commission earned).
NOTE: the commission earned by an Agent is held (it cannot be used) until the pay day usually after the month. Thus, all the commissions will be accumulating daily and the total earned will be released (paid) at the end of the month
I will show the commission structure of all mobile money services in Zambia soon.
How Profitable is Mobile Money Business in Zambia?
According to my experience, on average mobile money businesses are amongst few genuine profitable businesses in Zambia – take note of the term used ‘genuine’. In short, whether it is done as a side hustle or on a full time basis it is highly profitable. It is just a matter of commitment and time.
What determines the Profit, Commission/earnings of Mobile Money Business?
The following are the factors which determine the profits or commissions of mobile money business:
Traffic and Location:
This is the number one factor to consider before starting a mobile money business. In this situation traffic refers to how high or low the location is in terms of people who are using mobile money services. No wonder you see a lot of Booths Mounted/placed along the main roads and market places. Remember traffic and locations go hand in hand..
Regardless of how much capital you have invested in your mobile money business if people are not approaching your booth your commissions will remain static. (Icishele Mukalya Kapito yenu!) [you will end up depleting your own capital].
You may have enough capital but if a place where your Booth is allocated is not busy, your commissions will remain low.
Choose the location with much care. In some cases you may choose a palace where scammers are rampant and you have none nearby to help you in case of danger – avoid such places at all costs.
Working Capital:
This is the second factor because it increases the chances of creating confidence in your customers. No customer could visit your Booth again and again after finding out that you are always out of money whenever he or she comes to your working place. Capital determines your monthly earnings greatly.
So you may ask, how much capital should I invest in a mobile money business?
I do recommend between K5000 – K20,000.
But please wait!!!
It depends mainly on two things: Customer potential and traffic (traffic is already covered).
Customer potential refers to the average amount of money customers are depositing and withdrawing. So the combination of Customer potential and traffic could give you a picture of the capital to use in mobile money business.
For example, if you are having at least 3 customers looking for transactions amounting to K5000, either deposit or withdraw, then K10,000 is okay to be used as a capital in your mobile money business.
I also recommend doing market research before starting. Ask politely from the already established Mobile Money Agents how the business is going. Or if it matters less become a usual customer for the sole purpose of Business research.
Number of Mobile Money Services:
Having one or two Agent SIM cards won’t increase your agent commission accumulations at a greater degree. For higher commissions please try by all means to become a Mobile money agent of the following services:
Airtel Zambia
MTN Zambia
Zamtel
Zanaco express agent
ATRASMARA (Tenga Agent) Access as at now.
FNB (E- Wallet Agent)
543 Konse Konse (Merchant Agent)
Kazang Agent
Zoona – we don’t know why it is not trending nowadays.
Zamtel Super-Agent (to be explained)
MTN Super-Agent (to be explained)
This is to ensure that once you receive a customer, you serve him or her in all the things required, this could only be achieved when you are having a good number of mobile money agent SIM cards.
There are some situations where one customer may withdraw the money from his or her Zanaco Account and tell you as an Agent to deposit to Zamtel, MTN and Airtel if you have all these four services the commissions will all be yours.
Agent – to – Customer/client relations:
How effective are you in terms of interacting with your clients/customers? This is another important factor which boosts the profits/commissions of mobile money business.
If I may ask, have you ever approached a mobile money Agent and got frustrated due to his or her behaviour in one or two aspects? Since then do you still feel a need to return to him or her for any transaction? Your answers indicate how Agent –to – customer relations may affect mobile money business.
So, in order to increase Agent – to – customer/client relations as a way of increasing commission/profits, do the following:
– Open your booth early and close it a little beat late (depending on how safe the location is)
– Always be present at your workplace (avoid a situation of short appearing and disappearing)
– Miss at least only one day in a week, especially during weekends (I love working on Sundays because most Agents dislike it so they give room for me!)
– Learn to solve customers’ simple problems like pin reset, balance check, bundle and minutes subscriptions and many more
– Answer politely once you receive an arrogant customer, especially drunkards, but, don’t be too good, some just pretend in order to steal money from you.
– Smile where it is necessary
– Dress properly not like a street kid, prostitute, weed smoker and other outcasts of society.
Competition:
Competition is another factor which determines the earnings potential in the mobile money business. Nevertheless, it is not something to worry about as long as you have maintained other factors discussed earlier you can do better.
Serving customers effectively increases your chances to become an excellent competitor.
It is also important to note that the more competitive a place is the more traffic and commissions hence do not fear competition.
How much could you make in the mobile money business?
You can make money between K1000 and K4000 using a capital of K4000 and K10,000 on average. Remember this is just an estimation. The profits largely depend on the factors discussed above.
Advantages of Mobile Money Business:
Regardless of the challenges mobile money Agents face there is ‘sugar’ and ‘salt’ in this business – I really love it.
Let me expose all the advantages of mobile money business:
– It is highly profitable if it is done with timing.
– It is a smart business, there is no need to apply much energy during the work
– The profits are easily known and calculated. You get all what you earned.
– It suits almost all the districts and towns of Zambia. No need to worry if you relocate.
– You easily gain experience without many difficulties.
– Level of education is not much necessary, it is just a matter of interest.
– Low tax payments
Disadvantages of mobile money business:
– You tend to lose money anytime because you are with it always (in hard and soft copy).
– In most cases it does not support recruiting others, it is ‘’do it yourself’’ kind of business for better results.
Shortages of money in Mobile Money Business (the greatest threat in mobile money business)
I have decided to discuss this subject on its own because it is the most threatening financial issue in the mobile money business.
‘Shortages of money’ or just ‘shortage’ is the most common term used by mobile money Agents whenever there is unintentional decrease(loss of money) or capital.
How does this occur? To answer well this question, let me tell you the personal testimony on how I made my first noticeable ‘’shortage’’ in mobile money business:
NOTE: Without having the solutions to shortages you cannot become a successful mobile money Agent.
It was on Friday around 15:00 hrs when I decided to knock off early as my custom is, I counted the money and the total was K3000. I arranged my money notes neatly like an accountant. The money (K3000) was kept nicely in my small undamaged bag and I zipped it. The Booth was closed and locked and off. I started my journey going home very excited because it was my first time to earn about K1200 profits/commissions.
So, immediately I reached home the feelings of excitement to go through the money approached my soul. Without wasting time I unzipped my small neat bag, to my surprise, I noticed some changes in the way the money was arranged. After recounting the money, K1000 was found missing!!! Yes it is correctly typed K1000 (one thousand kwacha)! Remember on my way back home I was alone.
Question; By which way was the money lost?
Shortages come in two ways; physical and spiritual
Physical means:
– Over giving of a change
– Depositing more than what you are told e.g instead of depositing K10 you deposit K100.
– Depositing to a wrong person/number (very rare)
– Giving out more than what a customer has withdrawn
– Scammers (common to careless inexperienced mobile money Agents)
Spiritual means:
This is a mysterious loss of money. In the testimony I gave above, it is clear that the money got lost through dark spiritual means.
Some may not agree with me on this one but again I have hundreds who could testify. Remember spiritual problems are solved spiritually and not physically.
There are numerous true reports about this problem hence never underrate it.
I was among the list of people who thought mysterious shortages are just made up stories, guess what! It cost me a lot.
Solutions to mobile money shortages:
Physical means;
– Over giving of a change (calculate well, use your phones calculator if you are not good at Maths, recount the money at least twice before giving it out to a customer)
– Depositing more than what you are told ( Ask the customer twice and make sure you type the correct figures)
– Depositing to a wrong person/number (very rare) [let a customer confirm the recipient’s name before you deposit]
– Giving out more than what the customer has withdrawn (check the message twice and recount the money) avoid family stress and other mental pressure during work
– Scammers (common to careless inexperienced mobile money Agents) [be alert every customer you receive).
Spiritual means;
– Spiritual problems are solved spiritually.
Do not underrate this challenge if you do your capital will vanish within a week.
Never go in an ungodly way, I have never attempted that.
Having covered many things related to the mobile money business, let us go to the next important issue.
How to start a mobile money business?
To start with, let me say mobile money business could be classified in three (3) levels namely;
- Beginner,
- Advanced and
- Expert.
These levels are not official; I have just used them for better explanations.
Therefore, I will discuss all three levels and how to venture into each one of them. To my friends having enough capital, you could start at any level but I do recommend starting as a beginner so that you gain more experience thereby reducing chances of incurring a loss as you advance to expert level.
- Beginner: (Airtel, MTN and Zamtel)
Preparations & Expectations:
– Capital = K5000 or less
– Expected Income = K1000 to K6000
– Number of Workers = 1 (yourself)
As a beginner, you need to register as a Mobile Money Official Agent
Below are the steps to follow if you want to become a mobile money agent.
Personally I do not recommend hiring someone to do the work on behalf of you unless otherwise. These steps apply to both parties (do it yourself and hiring):
a. Do a market research
Try to consult more about the area where you think is suitable to mount your booth but as of today it is a wise decision to rent a small shop.
b. Prepare a capital
Avoid investing more money at once, wait for three months, see the results and decide how much is worth. Though I have recommended a certain amount above, it is okay to start with any amount you feel like. Avoid loans when you are just starting.
c. Prepare three Agent SIM cards (Airtel, MTN and Zamtel)
Never start mobile money with one Agent SIM card, make sure you prepare at least 3 Sim Cards.
Requirements for becoming a mobile money Agent (SIM card Acquisition) of Airtel, MTN and Zamtel.
– National Registration Card (N.R.C)
– Tax Personal Registration Number (TPIN)
Remember Agent SIM cards are given for free (nevertheless, do not argue against strongly if you are told to pay ka something, this is Zambia)
d. Pay for Business Permit/Trading License (the cost differs from one place to another) This may not apply in some locations of Zambia.
e. Mount the Booth
f. Paint your booth nicely as a part of the advert and start your business.
(NOTE: If the booth is from the Company Airtel, MTN or Zamtel painting is not permitted)
2. Advanced Level (add Banking Services)
Preparations & Expectations:
– Capital = K20,000+
– Number of workers = one or two (Involve the most trusted person, your spouse could be a perfect match).
– Profits/income/earnings = K6000 to K20,000
After a successful completion of the Level as a ‘’beginner’ ’go to the next one Advanced. At this level a capital of K20,000 will be required for the sake of effective performance in mobile money business.
At this level add Bank services to your Mobile money Business. As far as I type this work (30th October 2023) only three Banks are performing well in Mobile Money Services. Therefore, it is important that you rent a good outlet like a shop for security and attraction reasons.
These are Zanaco, ATRASMARA and FNB.
Check how to become their agents here.
As an expert in mobile money business, you must add the following services in one or more districts:
a. Bulk selling of SIM cards
b. Bulk Float and Cash Distributions.
c. Bulk selling of Mobile Gadgets from Airtel, MTN and Zamtel.
d. Selling of Airtel, MTN and Zamtel Gadgets likes Smartphones, Tables and Mifi.
Bulk selling of SIM cards
Once you become a retailer, you will be ‘’ordering’’ one SIM card at K2.5 and resell it at K3 or K5. Again you need to recruit one worker for this specific task.
Bulk Float/stock and Cash Distributions.
What is float/stock? Float/stock (in mobile money language) is the soft money found in Agent’s line. The money is used for deposits, bill payments and selling of direct top up (talk time).
What is Cash? The ‘hard’ money a mobile money Agent is having at hand. This money is used for giving out customers who are withdrawing and issuing out a change.
So, there are people who are offered this privilege of Exchanging Float for Cash and vise- versa. These people are known as Super Agents. They are given special agent SIM cards known as Super- Agent SIM cards.
How do super Agents make money using their Super – Agent SIM cards?
Super- Agent SIM cards are programmed to earn a commission once a float/stock is shared to any mobile money agent of the same network.
Illustration:
– Mildred is having an MTN super Agent SIM card,
– Mutale asks K10,000 float/stock from Mildred
– Mildred transfers K10,000 from her MTN Super – Agent to Mutale’s MTN Agent line/sim card.
– Mutale deposits K10,000 to a customer
– Mildred earns K25 commission for money transfer made.
NOTE: When Mildred transfers K10,000 float/stock to Mutale, Mutale must give K10,000 cash to Mildred. Mutale will earn a commission for depositing money to a customer while Mildred will earn money for float/stock transfer to Mutale because Mildred is a super -Agent. This is the fastest way of making money in the mobile money business as of now! I have witnessed people making money sometimes K10,000 per month using one Super – Agent SIM card. The good news is you can obtain as many as you wish.
Bulk selling of Mobile Gadgets from Airtel, MTN and Zamtel.
Qualifications are just the same as those listed above.
Quick Notes:
– Mobile money business is good for committed individuals
– Regardless of financial muscle every one could start
– The income depends on many factors as mentioned above
– Shortages are a great threat in the mobile money business.
– Mobile Money activities are on increase and there is no sign of decrease because we are almost approaching a cashless age.
If you are willing to start a mobile money business go through the given guide above before you start for your own benefit.
You are free to consult me for free.
Frequently Asked Questions about Mobile Money in Zambia.
Qtn. How does MTN mobile money work in Zambia?
Ans. This is a service which permits people to pay bills, save money and withdraw money electronically through mobile wallets.
Qtn. What is a money mobile?
Ans. It is a service by which people perform transactions electronically through e-wallets especially using phones and Sim – cards
Qtn. What is the maximum amount in MTN Mobile money account Zambia?
Ans. It depends with the account, personal no upgraded K20,000, Personal Account upgraded, Agent Sim card K1000,000
Qtn. What are the benefits of MTN mobile money?
Ans.It is secured, convenient and easily accessible.
Qtn. How can I use mobile money?
Ans. Register for it and start mobile money transactions.
Qtn. What is mobile money used for in Zambia?
Ans. It has many uses such as Bill payments, sending of money, receiving of money, savings, borrowing and as a side hustle.
Qtn. How much do Airtel money agents make in Zambia?
Ans. It depends but on average it is K600 – K8,900
Conclusion:
The mobile money business in Zambia presents a genuine and profitable opportunity for both seasoned entrepreneurs and newcomers alike. As highlighted throughout this article, factors such as location, traffic, working capital, and effective customer relations play a pivotal role in determining success. With proper preparation, including acquiring multiple agent SIM cards and offering a range of services, you can position your business for higher profits.
While challenges such as money shortages—both physical and spiritual—can arise, they are manageable with vigilance and the right solutions. Ultimately, the mobile money business offers a flexible, high-reward venture for those willing to invest time and commitment. Whether starting small or scaling up to advanced levels, the possibilities are immense for those ready to serve Zambia’s growing mobile money market.
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Thanks.
As an aspiring mobile money agent I can say I’ve learnt a lot from your explanations which you expressed using layman’s terms. Thank you very much sir . I’ll get in touch with you shortly for more information regarding the same business.
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