Competitor Profile: M-PESA 2025

Competitor Profile: M-PESA 2025

Summary

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. 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 banks, a lack of banking facilities, low card penetration, minimal card acceptance infrastructure, and the high cost of dealing with cash in Kenya. Users can register for the service at authorized M-PESA agents and transfer money from an M-PESA account to recipients via mobile phone.

M-PESA users can also carry out ATM cash withdrawals as well as online and in-store payments using their phone. Safaricom expanded its services to include NFC-based in-store payments in May 2017. In November 2018, Safaricom introduced M-PESA Global, enabling users to make mobile cross-border fund transfers through its partnerships with PayPal and Western Union. In June 2022, M-PESA partnered with Visa to launch the M-PESA GlobalPay virtual card, enabling M-PESA users to shop globally at partner online merchants. In July 2023, M-PESA launched buy now pay later solution Faraja in collaboration with financial services provider EDOMx. The solution enables customers to make purchases of between KES20 ($0.14) and KES100,000 ($715.08) at zero interest and pay for the item(s) within 30 days.

In April 2020, Vodacom and Safaricom completed the acquisition of the M-PESA brand, product development, and support services from Vodafone via a newly created joint venture. In September 2024, Safaricom partnered with Mastercard to facilitate payment acceptance and cross-border remittance services for M-PESA merchants in Kenya. In the same month, Safaricom introduced M-PESA Ratiba, a standing order feature that allows users to set up recurring payments from their M-PESA wallets for bills and subscriptions. In January 2025, a proposal was made to link M-PESA with PesaLink, Kenya’s interbank payment system, to enable direct transfers between mobile wallets and bank accounts. The integration is subject to regulatory approval.

The report provides information and insights into M-PESA including -

• Detailed insight into its business
• Comprehensive coverage of its products and services
• Comparative assessment with key alternative payment solutions
• Information on its revenue model and performance highlights
• The company's important events and milestones

• In March 2007, M-PESA launched in Kenya.
• In August 2013, M-PESA launched house rent payment service Lipa Kodi.
• In April 2020, Safaricom and Vodacom completed the acquisition of the M-PESA brand, product development, and support services from Vodafone Group.
• In March 2024, M-PESA partnered with payment services provider Onafriq, allowing M-PESA users to transfer money between Ethiopia and 40 African countries.
• In January 2025, M-PESA partnered with payment services provider Onafriq, allowing M-PESA users to transfer money between Ethiopia and 40 African countries.

• Learn about company's business proposition, and important achievements regarding product launches, partnerships, mergers, and acquisitions.
• Examine the company’s operational and financial performance and benchmark it against its competitors.
• Detailed insight into company's current products and services mix.

• Gain insights into M-PESA's business operations and key events.
• Gain insights into its product portfolio and revenue model.
• Assess the competitive dynamics in the alternative payments industry by comparing its performance against competitors.