Vodafone M-Pesa

Safaricom

M-Pesa is a mobile banking service that allows users to store and transfer money through their mobile phones. M-Pesa was originally introduced in Kenya as an alternative way for the unbanked population of the country to have access to financial services. Safaricom, the largest mobile phone operator in Kenya as of 2016, launched M-Pesa in 2007.

Product description Brand name and 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) Target region for distribution/implementation (listed by country if specified)

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

Distributors/implementing organizations Organization(s) distributing/deploying this product directly to communities/individuals?"

M-Pesa is distributed by Vodafone for Safaricom.

Market suggested retail price Price per unit or service price per usage/terms (USD). Subsidies noted.

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 Similar products available on the market. May not be a comprehensive listing.
SDG targeted United Nations Sustainable Development Goals (SDGs) targeted with this product/application/service

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) Target user/consumer base (country, income segment)

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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