7 Mistakes to Avoid When Using M-Pesa in Your Craft Business

7 Mistakes to Avoid When Using M-Pesa in Your Craft Business

M-Pesa is a powerful tool for managing money in your craft business—but only if used correctly. As a craft seller in Kenya, especially when starting out, it’s easy to make small mistakes that can cost you customers, money, or even your business reputation.

Here are 7 common M-Pesa mistakes and how to avoid them:

1. Mixing Personal and Business Funds

Mistake: Using your personal M-Pesa account for both business and personal expenses.

Why It’s a Problem: It becomes hard to track how much your business is earning or spending. You may accidentally use your profits on personal items, leading to poor financial decisions.

Solution: Open a separate line or a Lipa na M-Pesa Till for your business. Keep business and personal transactions separate from the start.

2. Not Confirming Payments Before Releasing Goods

Mistake: Giving a customer their product before checking your M-Pesa confirmation.

Why It’s a Problem: Some customers may send fake SMS messages or cancel transactions immediately after sending.

Solution: Always verify the payment via:

• M-Pesa SMS

• MySafaricom App

• Mini statement (*234#)

3. Forgetting to Send Receipts or Payment Confirmations

Mistake: Not confirming with the customer that you received payment.

Why It’s a Problem: It may cause confusion or mistrust, especially with online orders.

Solution: Send a quick thank-you message with the transaction code. It’s professional and builds confidence.

Example:
“Thanks for your payment of Ksh 750 (Ref: QST23HHK). Your earrings will be delivered tomorrow.”

4. Ignoring Transaction Fees

Mistake: Charging Ksh 500 for a product but forgetting that part of it goes to M-Pesa fees.

Why It’s a Problem: You may lose money over time if fees eat into your profits.

Solution:

• Use a Buy Goods Till to avoid customer-side charges

• Consider including transaction fees in your pricing

• Track costs and adjust accordingly

5. Not Backing Up Transaction Records

Mistake: Relying only on SMS confirmations or forgetting to track payments.

Why It’s a Problem: Without records, you can’t prove a sale happened, and your business books will be messy.

Solution:

• Download monthly M-Pesa statements

• Use a notebook, spreadsheet, or simple app to record every sale

6. Withdrawing All Your Money Immediately

Mistake: Taking out all your earnings as cash as soon as you receive them.

Why It’s a Problem: You’ll spend more on withdrawal fees and lose track of how your money is being used.

Solution:

• Keep funds in M-Pesa until needed

• Pay suppliers or expenses directly via M-Pesa

• Save some in M-Shwari or KCB M-Pesa

7. Not Training Staff or Helpers on Proper Use

Mistake: Allowing staff or family to handle your M-Pesa sales without guidance.

Why It’s a Problem: They may send money to the wrong number, fall for fraud, or misrecord transactions.

Solution:

• Teach them how to confirm payments

• Set clear rules (e.g., never release a product before verifying)

• Limit access to sensitive information