Alternative Payment Solution: M-Pesa
M-Pesa is a mobile-based fund-transfer and micro-level banking service available to customers of Safaricom, Kenya’s largest mobile network. Introduced in 2007, the service has become a primary channel for fund transfers in the country. As of September 2017 it had an active customer base of 27.8 million in Kenya.
Originally developed as a low-cost microfinance loan-repayment system, it was extended as an open platform to remit funds and make consumer payments, due to its rising popularity. This was largely a result of factors such as the high cost of remitting funds through banking, a lack of banking facilities, low card penetration, minimal card acceptance infrastructure, and the high costs involved with dealing with cash in Kenya.
Users can register for the service at an authorized M-Pesa agent, and transfer money from an M-Pesa account to a recipient by mobile phone. In addition to money transfers, M-Pesa users can also carry out transactions such as ATM cash withdrawals, and online and in-store payments using a mobile phone. Safaricom expanded its services in May 2017 to include NFC-based in-store payments. The new service, called M-Pesa 1Tap, allows users to make payments simply by tapping a card, mobile phone sticker, or wristband device that is connected to their M-Pesa account onto a contactless POS terminal. Furthermore, Safaricom has collaborated with Commercial Bank of Africa (CBA), allowing users to open an M-Shwari bank account on a mobile phone without having to visit a bank branch.
The report provides information and insights into alternative payment solution M-Pesa, including -
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