Only 4 million Kenyans have bank accounts. But 10 million people in the country now use the M-PESA money transfer service. This short video by CGAP shows how mobile money is changing the face of banking in Kenya and it’s implications world wide.
M-PESA (M for mobile, pesa is Swahili for money) is the product name of a mobile-phone based money transfer service whose initial concept and design was Kenyan and was later developed by Sagentia for Vodafone. The development of M-PESA was initially sponsored by the UK-based Department for International Development (DFID) in 2003.
The initial concept of M-PESA was to create a service which allowed microfinance borrowers to conveniently receive and repay loans using the network of Safaricom airtime resellers.This would enable microfinance institutions (MFIs) to offer more competitive loan rates to their users, as there is a reduced cost of dealing in cash.
But when the service was trialled, customers adopted the service for a variety of alternative uses.
News about M-PESA
Safaricom’s M-Pesa customers up 60 per cent
The number of customers on Safaricom’s money transfer service, M-Pesa has grown by 60 per cent to 11.89 million as of last month from 7.4 million last year.The amount of money the service has transferred since inception in 2007 reached Sh525.84 billion in the financial year ended July.
Statistics released by the operator yesterday showed that the monthly average of money moved in the system has increased by 30 per cent.
Read more on The Standard