Comparing Delivery Methods: M-Pesa vs Bank vs Cash Pickup
When sending money to Kenya, you typically have three delivery options. Here's how to choose the right one.
The Three Main Options
1. Mobile Money (M-Pesa)
Money goes directly to recipient's M-Pesa account.
2. Bank Deposit
Money deposited into recipient's Kenyan bank account.
3. Cash Pickup
Recipient collects cash at an agent location.
Quick Comparison
| Factor | M-Pesa | Bank Deposit | Cash Pickup |
| Speed | Minutes | Hours-Days | Minutes-Hours |
| Cost | Low | Low-Medium | Medium-High |
| Convenience | Highest | Medium | Lowest |
| Limits | 150k KES | High | Varies |
| Requirement | M-Pesa account | Bank account | ID only |
M-Pesa Delivery
How It Works
- You send via app (Sendwave, Remitly, etc.)
- Provider deposits to recipient's M-Pesa
- Recipient gets SMS confirmation
- Money available immediately
Pros
- Instant: Arrives in minutes
- Convenient: No travel needed
- Usable: Pay bills, buy goods, transfer immediately
- Available: 24/7, including holidays
- Safe: No cash handling
Cons
- Limits: Max 150,000 KES per transaction
- Requires M-Pesa: Recipient needs account
- Withdrawal fees: If converting to cash
Best For
- Regular family support
- Urgent transfers
- Any amount under $1,200
- Recipients who'll use digitally
Providers Offering M-Pesa
| Sendwave | Minutes | Lowest |
| Remitly | Minutes | Low |
| WorldRemit | 10-60 min | Medium |
| Western Union | Minutes | Higher |
Bank Deposit
How It Works
- You send via provider
- Provider transfers to recipient's bank
- Money arrives in bank account
- Recipient can withdraw or transfer
Pros
- Higher limits: No practical limit
- Good for saving: Money stays in bank
- Formal record: Bank statements
- Can transfer to M-Pesa: Flexibility
Cons
- Slower: Hours to days
- Requires bank account: Not everyone has one
- Bank hours: Processing during business hours
- Withdrawal limits: ATM limits apply
Best For
- Large transfers ($1,000+)
- Money meant for saving
- Business payments
- When recipient prefers bank
Providers Offering Bank
| Wise | 1-2 days | Lowest |
| Remitly | Same day-2 days | Low |
| WorldRemit | 1-3 days | Medium |
| Bank Wire | 3-5 days | High |
Cash Pickup
How It Works
- You send via provider
- Receive confirmation with reference number
- Share reference with recipient
- Recipient goes to agent with ID
- Collects cash
Pros
- No account needed: Just ID
- Cash in hand: Physical money
- Familiar process: Traditional method
Cons
- Inconvenient: Must travel to agent
- Higher fees: Usually more expensive
- Security concern: Carrying cash
- Agent hours: Limited availability
- Wait times: May have queues
Best For
- Recipients without M-Pesa
- Recipients without bank account
- One-time transfers to unfamiliar recipients
- Elderly recipients who prefer cash
Providers Offering Cash Pickup
| Western Union | Widest | Higher |
| MoneyGram | Wide | Higher |
| WorldRemit | Good | Medium |
| Remitly | Limited | Medium |
Decision Matrix
Based on Amount
| $50-200 | M-Pesa | Fast, cheap, convenient |
| $200-1,000 | M-Pesa | Under limit, still convenient |
| $1,000-5,000 | Bank | More secure for larger amounts |
| $5,000+ | Bank | Best for large amounts |
Based on Urgency
| Emergency | M-Pesa | Minutes, not hours |
| Same day | M-Pesa or Cash | Fast options |
| Can wait | Bank | Often cheaper |
| Not urgent | Bank | Lowest cost |
Based on Recipient
| Recipient Type | Best Method | Why |
| Family with M-Pesa | M-Pesa | Most convenient |
| Family without M-Pesa | Help them register, then M-Pesa |
| Business | Bank | Documentation |
| Elderly | Cash or help with M-Pesa | Familiarity |
| Remote rural | M-Pesa | Agents everywhere |
Cost Comparison
$500 Transfer
| Method | Provider | Total Cost | Recipient Gets |
| M-Pesa | Sendwave | ~$7.50 | ~63,500 KES |
| M-Pesa | Remitly | ~$10 | ~63,200 KES |
| Bank | Wise | ~$5 | ~63,800 KES |
| Cash | Western Union | ~$25 | ~61,500 KES |
$1,000 Transfer
| Method | Provider | Total Cost | Recipient Gets |
| M-Pesa | Sendwave | ~$15 | ~127,000 KES |
| Bank | Wise | ~$8 | ~128,100 KES |
| Cash | Western Union | ~$45 | ~123,500 KES |
Common Scenarios
Scenario 1: Monthly Family Support ($300)
Best choice: M-Pesa via Sendwave
- Fast delivery
- Low cost
- Easy to repeat
- Family can use immediately
Scenario 2: School Fees ($2,000)
Best choice: Bank via Wise
- Larger amount, more secure
- Can pay school directly from bank
- Good documentation
- Lowest cost for this amount
Scenario 3: Emergency Medical ($500)
Best choice: M-Pesa via Sendwave/Remitly
- Speed is critical
- Recipient can pay hospital via M-Pesa
- Available 24/7
Scenario 4: Elderly Parent, First Time ($200)
Options:
- Help them register M-Pesa (best long-term)
- Cash pickup if they can't use M-Pesa
- Send to family member who can assist
Making the Switch
If Currently Using Cash Pickup
Consider switching to M-Pesa:
- Savings: $10-20 per transfer
- Convenience: No travel for recipient
- Speed: Same day vs uncertain
If Recipient Doesn't Have M-Pesa
Options:
- Register them: Free, takes minutes at Safaricom agent
- Send to family member: Who can give them cash
- Use cash pickup: Until they're set up
Conclusion
Choosing the right delivery method:
- M-Pesa wins for most transfers - fast, cheap, convenient
- Bank deposit for large amounts - secure, lower cost
- Cash pickup when necessary - no account needed, but costlier
For most diaspora sending regular support, M-Pesa is the best choice.
Compare delivery methods and costs with our calculator.