Vodafone M-Pesa

Safaricom

M-Pesa is a transformative mobile banking service launched by Vodafone for Safaricom in 2007. It lets people make small amount transactions using SMS technology without having to create bank accounts or having to physically carry cash. As a result, those who had been previously excluded from formal financial activities (i.e. saving money, sending money) can actively participate in financial industry.

M stands for mobile and PESA for a Swahili word for money. M-Pesa is sponsored by Vodafone.

Product description

M-Pesa is a transformative mobile banking service launched by Vodafone for Safaricom in 2007. It lets people make small amount transactions using SMS technology without having to create bank accounts or having to physically carry cash. As a result, those who had been previously excluded from formal financial activities (i.e. saving money, sending money) can actively participate in financial industry.

M stands for mobile and PESA for a Swahili word for money. M-Pesa is sponsored by Vodafone.

Target region(s)

Kenya (main market), Tanzania, DRC, Mozambique, India, Romania (since 2014) and Albania (since 2015).

Distributors/implementing organizations

M-Pesa is distributed by Vodafone for Safaricom.

Market suggested retail price

Subscription to M-Pesa is free. M-Pesa services are then paid individually.M-Pesa rates, charges and tariffs for 2016; or find the rates for any particular transaction.

For example,

– Withdrawing USD 10 from M-Pesa Agent costs USD 0.27;

– Withdrawing USD 10 from an ATM costs USD 0.33

– Transfering USD 10 to other M-Pesa users costs USD 0.25;

– Transfering USD 10 to unregistered users costs USD 0.58;

(as of July 2016 USD 1 is 101.5 KES)

Competitive landscape
SDG targeted

M-Pesa works to advance financial inclusion in undeserved communities which allows better financial opportunities to deal with risks such as disease, famine), food and health emergencies, among others.

Target user(s)

Individuals excluded from banking services.

In 2015 Vodafone has entered into a deal with MTN that will see their respective mobile money customers transfer money to each other across the seven Eastern African countries. The agreement now enables convenient sending of cash between M-Pesa customers in Kenya, Tanzania, DRC Congo and Mozambique, and MTN Mobile Money customers in Uganda, Rwanda and Zambia.

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