M-Pesa success sets pace for mobile money uptake
A user withdraws money from an M-Pesa shop in Nyeri on May 2, 2016. Growth in mobile money has boosted trust in cashless transactions. PHOTO | JOSEPH KANYI | NATION MEDIA GROUP
What you need to know:
- While releasing its 2015 end year financial results, Safaricom disclosed that M-Pesa revenue was up 27.2 per cent to stand at Sh41.5 billion, compared to 2014’s Sh32.6 billion.
The tremendous success of M-Pesa in Kenya is influencing consumers and businesses in other African countries to adopt mobile money, a survey has said.
The study titled Mobile Payment Transaction Market, which looks at the text-based payment mode, Near Field Communication (NFC) and web-based payments, says Kenya’s M-Pesa is popular since any rudimentary GSM phone on the Safaricom network can register for it.
“Unlike US and Europe, a majority of consumers do not own a credit card. In Asia-Pacific region and Africa mobile payments will continue to be strong and as proved by M-Pesa; many countries are making a direct shift from cash to mobile payments,” it said.
The report prepared by US-based market intelligence and consulting firm Future Market Insights (FMI) said adoption of the money transfer service in Africa will ensure the continent maintains its number one position in terms of value.
“Africa currently accounts for nearly 32 per cent revenue share of the global mobile money market, with a subscriber base of over 100 million thanks to the rapid uptake of text-based mobile payment systems influenced by Kenya’s M-Pesa,” it said.
While releasing its 2015 end year financial results, Safaricom disclosed that M-Pesa revenue was up 27.2 per cent to stand at Sh41.5 billion, compared to 2014’s Sh32.6 billion.
The fast rise in revenue was buttressed by a growing customer base of 16.6 million, a 19.8 per cent increase.
Interestingly, the M-Pesa platform also supports several direct payment for goods and services run by banks among them Commercial Bank of Africa’s M-Shwari and KCB M-Pesa.
By end of 2015, M-Shwari had 3.9 million customers who saved Sh8.1 billion and received loans worth Sh7 billion while KCB’s M-Pesa had registered 700,000 active users.
This growth in mobile money that has also been adopted by other players in Kenya has boosted trust in cashless transactions where banks are now scrambling to join the cashlite community, based on the mobile phone platforms.
