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Mobile Money Disbursement

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How it Works

Nkwa Pay allows you to send funds directly to your customers’ mobile money wallets. Unlike payment collections, disbursements do not require the customer to authorize the transaction with a PIN code - they simply receive the funds in their mobile money account. The disbursement flow works as follows:
  1. Initiate Disbursement: Your application sends a disbursement request to Nkwa Pay API
  2. Balance Check: Nkwa Pay verifies you have sufficient balance in your account
  3. Processing: The mobile network operator (MTN or Orange) processes the disbursement
  4. Notification: Nkwa Pay notifies your application about the disbursement outcome via webhook
  5. Customer Receipt: The customer receives the funds in their mobile money account along with an SMS notification
Disbursements are useful for various business scenarios including:
  • Refunds for returned products or canceled services
  • Payouts to freelancers or gig workers
  • Loan disbursements by financial institutions
  • Prize or promotion payments
  • Salary payments to employees or contractors

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Disbursement Status

Once your disbursement request has been accepted for processing, it will have one of the following statuses on the Nkwa Pay platform:
StatusDescription
PENDINGThe disbursement request has been accepted and is being processed by the MNO
SUCCESSFULThe disbursement has completed successfully and funds have been received by the customer. This is a final state.
FAILEDThe disbursement request has failed. Common causes include invalid phone numbers, MNO service issues, or account restrictions. This is a final state.

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Implementation Recommendations

  • Balance Management: Ensure your Nkwa Pay account has sufficient balance before initiating disbursements
  • Recipient Verification: Validate phone numbers before initiating disbursements to reduce failures
  • Transaction Records: Maintain detailed records of all disbursements for reconciliation
  • Status Updates: Implement webhook handlers to receive real-time disbursement status updates
  • Notification: Consider sending your own notifications to customers informing them about the disbursement
  • Phone Number Format: Ensure phone numbers are properly formatted with the country code (e.g., “237600000000”)

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Testing Disbursements

In the sandbox environment:

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Refund Policy

If a disbursement request fails, you will be refunded the full amount of the disbursement (amount + fees) to your Nkwa Pay account balance. No funds are lost for failed disbursements. See our Implementation Guide for more details on integrating disbursements into your application.