Tag: M-PESA

M-Pesa and Dahabshiil team up for the Ethiopian remittance market

Leading mobile financial services provider M-Pesa Africa and well-known Addis Ababa-based international money transfer company, Dahabshiil have established a strategic alliance.

Through this partnership, Ethiopians residing abroad can send money straight to their M-Pesa digital wallets, revolutionising their remittance process.

Through this partnership, Ethiopians abroad can use Dahabshiil’s extensive network to send funds directly to their loved ones’ M-Pesa digital wallets, eliminating the need for physical cash transfers or lengthy queues. This streamlined process promises to save time, reduce costs, and increase the convenience and security of remittances.

Read also: Airtel code removal spurs rapid growth in Kenya’s mobile money market

The agreement is anticipated to significantly impact the Ethiopian diaspora population, enabling them to support their friends and family back home more efficiently.

M-Pesa and Dahabshiil Join Forces for Economic Growth

Musse Mohamed, Ethiopia’s country representative in Dahabshiil, commented on the partnership by saying that they are delighted they have partnered with Safaricom’s M-Pesa Ethiopia, giving their diaspora customers another channel to send money there, further enabling them to support their loved ones.

This partnership between M-Pesa Africa and Dahabshiil is evidence of their shared aim for financial inclusion and economic growth. Due to this development, m-Pesa Africa is firmly established as a leader in the mobile financial services industry, which further broadens its reach and offerings.

As a significant participant in international money transfers, Dahabshiil is an excellent partner. Acting Chief Digital Finance Officer of M-Pesa Anthony Kangethe said, “Together, they will share a vision of financial inclusion and driving economic development.

About M-Pesa and Dahabshiil

M-Pesa is the largest fintech platform in the region and the most successful mobile money service in Africa. Because of its exceptional convenience and safety, M-Pesa is the preferred payment method for banked and unbanked individuals throughout the continent.

Millions of people who own mobile phones but lack bank accounts or have restricted access to banking services are also served by it in terms of financial services.

Read also: Safaricom Ethiopia’s $1.5 billion investment begins with first batch of local towers

Currently, M-Pesa offers more than 51 million users in seven African nations a safe, economical, and convenient method to send and receive money, top-up airtime, pay bills, receive wages, get short-term loans and much more.

Dahabshiil is a well-known business that has been sending money worldwide since 1970. It started as a small trade company in Burao, Somalia and has grown into a global company that helps people and businesses in over 150 countries with their money.

Dahabshiil helps people outside of Africa send and receive money, do banking, and use mobile banking. People know that the company cares about community growth and supports many social and humanitarian projects. Its main office in Dubai focuses on security and compliance to ensure that all of its customers’ financial operations are safe and quick.

July 7, 2024
No pressure to split M-Pesa despite CBK and Treasury Interest- Safaricom CEO

The ongoing discussion about the possible division of Safaricom’s mobile money services platform, M-Pesa, has drawn interest from investors, regulators, and regular users.

Peter Ndegwa, the CEO of Safaricom, must strike a careful balance as the National Treasury and the Central Bank of Kenya (CBK) press for a split.

The company’s position on separating its mobile money services platform, M-Pesa, from its core activities was made clear by Peter Ndegwa in a recent interview.

Read also: Safaricom, Onafriq to streamline money transfers in Ethiopia

Safaricom is still wary of a possible separation despite pressure from the National Treasury and the Central Bank of Kenya (CBK).

The CBK, which presently oversees M-Pesa, has been a supporter of separating the mobile money services industry from the telecommunications industry. Improving monitoring and guaranteeing improved governance are the objectives. Safaricom isn’t persuaded, even though other telecom companies, like Airtel Africa Plc and MTN Group in South Africa, have already divided their mobile money services.

Safaricom CEO remarks

To benefit investors or customers, Peter Ndegwa stressed that any decision to separate M-Pesa will be taken proactively. He said, “If we do it, we will do it because we want to do it proactively, and it serves a purpose for either investors or customers.” Considering the past experiences of MTN and Airtel, Safaricom does not believe there is a compelling rationale for a split. After the split, the valuations of these companies did not always rise, and Safaricom did not need more funding.

One major obstacle is the possible Ksh75 million tax liability linked to the split. Safaricom has indicated it would reorganise internally, establishing a new holding company with mobile money and telecom services under one roof. Currently, the two don’t have formal structures and function independently.

Safaricom’s board: The Direction of Travel

While the National Treasury and the CBK are still in communication with Safaricom’s board, the tax issue is anticipated to be resolved by the Finance Bill 2024. It’s still unclear whether these changes would cause Safaricom to separate. According to Peter Ndegwa, any action will be considered if it benefits investors or customers. There isn’t any immediate push to end M-Pesa right now.

Read also: Kenyan authorities initiate crackdown on unlicensed lenders

M-Pesa has become essential to Kenya’s financial environment, serving Kenyans with millions of daily transactions. Millions of people, from small companies to rural homes, depend on its smooth transactions, frequently heralded as a financial revolution. However, as the platform’s impact increases, so do the challenges of overseeing it inside Safaricom’s more extensive business operations. Kenyans used the platform to transact a whopping Ksh40.2 trillion (about $306.89 billion) last year alone. Considering M-Pesa’s prominent role in the nation’s economy, any disturbance might have extensive consequences.

May 22, 2024
M-PESA, Microsoft equip African entrepreneurs with digital skills

Microsoft is partnering with M-PESA Africa, Africa’s leading fintech and payments service, to support MSMEs. Through Microsoft’s Community Platform and SME Skilling Programs, the alliance intends to digitize and close the skills gap, boosting MSMEs’ potential in numerous African markets.

M-PESA Africa, which connects over 60 million people and helps over 900,000 enterprises with innovative business solutions, prioritizes digital skills development. MSMEs will learn how to create solid business models, manage their finances, and provide excellent customer service by integrating the Microsoft Community and Training platform.

SMEs in emerging economies provide 40% of GDP and create 90% of new jobs, while up to 80% of African SMEs fail within five years. Addressing the skills gap and giving access to business tools and capital has never been more important in a continent with the youngest working population and highest entrepreneurship rate.

Read also: US Ambassador hails Kenyan mobile money transfer platform M-Pesa

Empower African Entrepreneurs Digitally

Microsoft’s Africa Transformation Office is dedicated to closing the digital skills gap and equipping MSMEs with the tools they need to grow their markets and boost Africa’s economy. The IT giant wants to digitally enable 10 million African SMEs with relevant business apps and ready-to-use skilling content.

M-PESA business solutions would give MSMEs access to Microsoft enhancing skilling programs to help them manage their finances. The training includes basic accounting, financial planning, and cash flow management, which increases their chances of accessing formal financial services. Adopting digital tools allows access to digital payment systems, saving time and money.

The alliance aims to improve MSME entrepreneurs’ and communities’ lives and help them compete globally. The initiative aims to reduce inequities and empower vulnerable people, coinciding with UN Sustainable Development Goal 10. M-PESA Africa markets, including Kenya, Lesotho, Mozambique, the DRC, and Tanzania, will host the program.

M-PESA Africa Managing Director Sitoyo Lopokoiyit was excited about the partnership: “Micro, Small, and Medium businesses are the backbone of African economies, so empowering them to succeed creates an even greater impact for their communities due to their outsized economic contribution.”

Safaricom launches M-Pesa in Ethiopia

Managing Director of Microsoft’s Africa Transformation Office Gerald Maithya stressed the importance of digitalisation for MSMEs without enough financial services. “For sustainable and inclusive economic growth, these important economically active businesses need an enabling environment to thrive and participate actively in the continent’s economies,” he said.

Microsoft and M-PESA Africa technology and innovation bring businesses more significant opportunities. It benefits communities and raises funds. This advantageous partnership would assist African MSMEs to succeed and stay in business.

October 9, 2023
US Ambassador hails Kenyan mobile money transfer platform M-Pesa

The United States Ambassador to Kenya, Meg Whitman, has hailed Kenya’s mobile money transfer platform, M-Pesa, as a groundbreaking technological achievement.

Speaking at the US-Africa business roundtable in San Francisco, Ambassador Whitman expressed admiration for M-Pesa’s innovative success, highlighting its potential to solve global challenges.

Kenya’s Game-Changing Invention

Ambassador Whitman underlined the significance of M-Pesa, which was introduced in 2007 and rapidly evolved to become the world’s largest mobile money network by 2010, generating annual revenues exceeding USD 1 billion. She noted that M-Pesa, with over 60,000 developers today, addresses one of the most critical issues in mobile money: secure and convenient payments.

“M-Pesa is extraordinary. It exemplifies the brilliant minds in Kenya that are crafting African solutions to global problems,” Ambassador Whitman remarked. With a presence in seven countries and over 50 million customers, M-Pesa plays a pivotal role in Kenya’s financial ecosystem, handling 70 percent of the nation’s transactions and supporting over five million businesses.

Read also: TerraPay partners with M-PESA to facilitate cross-border remittances

Driving Economic Transactions

Ambassador Whitman shared an astonishing statistic: “59 percent of Kenya’s annual GDP flows through M-Pesa, and 70 percent of Tanzania’s GDP is channelled through the platform.” She emphasised M-Pesa’s importance, both as a national and regional financial force. Its widespread use extends even to remote areas, making it the preferred payment method for many Kenyans.

M-Pesa allows users to conveniently pay for various services using their mobile phones, eliminating the need to carry cash. In a recent development, Uber and Safaricom entered into a partnership to simplify trip payments for riders across Kenya through M-Pesa. This collaboration builds on an earlier agreement between the telecommunications company and UberEats, enabling consumers to use M-Pesa for deliveries while riders receive their earnings through the same platform. The latest partnership aims to facilitate weekly payments to drivers who may not have bank accounts, enhancing financial inclusivity.

Empowering Financial Inclusion

M-Pesa’s success story underscores Kenya’s leadership in digital innovation and financial inclusion. By revolutionising mobile money transactions, the platform has transformed the way Kenyans manage their finances, providing secure, efficient, and accessible services to millions. It serves as a model for addressing financial challenges both within Africa and globally, demonstrating the potential for technology-driven solutions to drive positive change.

Unlocking Opportunities for Economic Growth

Ambassador Whitman’s praise for M-Pesa reflects the global recognition of Kenya’s innovation and its capacity to tackle complex challenges. As Kenya continues to lead the way in technological advancements, the country’s entrepreneurs and innovators are poised to contribute to solving not only Africa’s but also the world’s most pressing issues. M-Pesa stands as a testament to Africa’s ingenuity and the potential for homegrown solutions to shape the digital landscape and drive economic growth.

Safaricom Launches M-PESA Junior Accounts For Minors

About M-PESA

M-pesa, the pioneering mobile payment platform in Africa, continues to strengthen its presence on the continent, with over 40 million users and processing more than a billion transactions every month. Launched on March 6, 2007, by Safaricom, a subsidiary of Vodafone, M-Pesa has expanded its reach with over 604,000 active agents serving customers across multiple African nations.

M-Pesa has played a pivotal role in advancing financial inclusion across Africa. The platform operates in Kenya, Tanzania, Lesotho, the Democratic Republic of Congo, Ghana, Mozambique, and Egypt, providing millions of people with access to secure and convenient mobile payment services. Notably, approximately 25% of all M-PESA customers now have access to smartphones, and this figure continues to grow by 10% annually.

M-Pesa’s growth and innovation are emblematic of Africa’s dynamic technology landscape. As more users gain access to smartphones and mobile connectivity, M-PESA’s reach and impact are expected to expand further, driving financial inclusion, economic empowerment, and fostering a culture of innovation.

In a world increasingly dependent on digital technologies, M-Pesa’s success story serves as an inspiration for nations across Africa and beyond, highlighting the transformative power of innovation in addressing global challenges and fostering economic prosperity.

September 18, 2023
TerraPay partners with M-PESA to facilitate cross-border remittances

TerraPay, a global payments infrastructure firm, has formed a partnership with Safaricom, Kenyan telecommunications, information technology, and financial services provider. By working together, the two firms will expand access to financial services by lowering barriers to cross-border payments.

Through TerraPay’s group company Mobex (Kenya), a licenced Money Remittance Provider, over 30 million M-PESA mobile wallet-holders in Kenya will be able to send instantaneous payments to wallets in Bangladesh and Pakistan, with plans to expand to India and Nepal in the coming months.

M-PESA Global transactions increased in volume by 2.2% and in value by 5.6% year over year in the six months ending in March 2023, reflecting the growth of cross-border agreements. Since the Central Bank of Kenya began promoting mobile money transfers, their use in Kenya has increased. Both organizations have teamed up forces to promote financial empowerment and independence while fostering a more accessible payment ecosystem.

Read also: Two Chinese fintechs dominate Nigeria POS market

Users can embrace digital payments seamlessly

“We believe this breakthrough collaboration with Safaricom will spur a world of new possibilities for mobile financial service operators to directly scale globally and provide customers with a choice to send payments in a secure, transparent, and swift manner,” said Ambar Sur, Founder & CEO of TerraPay.

“Our partnership with Safaricom will further boost our capabilities in providing an inclusive global financial ecosystem powered by our agile payments infrastructure and empower Safaricom customers with fast & affordable borderless payment options and access to TerraPay’s widespread partner network of 7.5Bn+ bank accounts and 2.1Bn+ mobile wallets.”

Chief Executive Officer of Safaricom Peter Ndegwa made the following statement about the new partnership: “We are thrilled to partner with TerraPay as it comes at a time where a growing number of customers are embracing digital payments to send money to their loved ones.” TerraPay’s interoperable technology platform will enable our customers to execute secured & low-cost payments across key regions, further encouraging the adoption of digital payments in the region. We look forward to a successful collaboration.”

Flutterwave partners with IATA to expedite airline payments

About TerraPay

TerraPay, with headquarters in the United Kingdom, is founded on the principle that even the smallest payment merits a secure, borderless international voyage. The organization has been working to establish a global payments highway that gives companies the tools they need to provide their customers with transparent transactions that are safe, quick, and easy to do no matter where they are in the world.

TerraPay is one of the top worldwide partners of banks, mobile wallets, money transfer operators, merchants, and financial institutions, having been registered and regulated in 27 global countries. This helps to create a more extensive and inclusive international financial ecosystem. Through TerraPay’s broad network of 7.5 billion bank accounts and 2.1 billion mobile wallets in 112 receive countries and 208 send countries, its partners may serve as an inspiration for the future of universal financial access.

July 21, 2023
M-PESA to Split from Safaricom by January 2023

The Safaricom separation story has always been a trendy topic of conversation among lawmakers and others with a stake in the issue. Even though Safaricom’s internal teams and top leaders strongly disagreed with the narrative, and Safaricom’s former CEO, the late Bob Collymore, once said that the company shouldn’t be punished for being successful, this same story was linked to the idea that Safaricom has become too big and that its mobile money product, M-PESA, would be better off as a separate company from its parent company.

Although it has never been mentioned directly, an analysis conducted by British firm Analysys Mason found that the vast majority of the carriers and mobile money industry tilted the scales in Safaricom’s favour. The review was conducted with approval from the Communications Authority, which oversees the information and communications technology industry. In 2017, Analysys was the forerunner in proposing a division of Safaricom.

Why Should M-PESA Split from Safaricom?

The bill is an effort to bring equity to the field. In 2020, senators from Kenya revisited the issue, still insisting that the separation had been essential. They argue that companies like Telkom and Airtel Kenya, which might provide a serious challenge to Safaricom, would benefit from the market being divided in this way. They had also suggested that the carrier operations of the company be split into the CA and the CBK.

But after many months, MPs still wouldn’t look into the Safaricom split. Only two members of Parliament supported a new bill that would have made this split mandatory for all telcos. The bill was called the Kenya Information and Communications (Amendment) Bill, and Elisha Odhiambo, an MP for Gem then, pushed for it.

Read also: Safaricom Launches M-PESA Junior Accounts For Minors

There have been notable developments thus far on this subject. In the middle of this year, when it was made public that it would divide the company, Safaricom seems to have given in to pressure from lawmakers to do so.

Since then, Safaricom CEO Peter Ndegwa has said that the separation of the two companies would form a holding company that will be in charge of the telco’s mobile money services, towers, data services, and Ethiopian division. The company in Ethiopia is currently operational, and Safaricom services are already available in three locations. With its formal launch scheduled to occur in some weeks’ time,

“In the future, we expect there will be a holding company, probably the listed business, and there will be quite a few businesses that operate under Safaricom we are also able to monetise some of the assets we have, for example, the towers that we could lease in the future so probably have tower company,” CEO Peter Ndegwa had said previously.

Already, Safaricom is collaborating with Telkom and Airtel Kenya to share its infrastructure for paying bills and purchasing items. Interoperability across government agencies is also scheduled to go live in 2024.

Read also: Safaricom Launches Islamic Banking Service

Observations

Airtel Kenya has previously split its mobile money company, which operates under the name Airtel Money, from its other service offerings. It is the first company in Kenya to do this, and Telkom Kenya’s T-Kash product was supposed to be ready around the same time as Airtel’s, but that has not yet transpired.

According to a statement made by the Governor of the CBK, Patrick Njoroge, the final split could be completed as early as January.

This implies that M-PESA and T-Kash will become like Airtel Money, which has separated from its mother company and will be independent.

September 28, 2022
Safaricom Launches Islamic Banking Service

Safaricom the largest telecommunications provider in Kenya has partnered with Gulf African Bank, a commercial bank in Kenya operating under an Islamic banking regime to launch the first Sharia-compliant mobile and digital banking solution named Halal Pesa.

According to Bank of England, Islamic finance is a way to manage money that keeps within the moral principles of Islam. It covers things like saving, investing, and borrowing to buy a home. Hence, Islamic banking involved services that rely on the principle of Shariah.

Halal Pesa aims to enable M-PESA clients who have previously been unable to obtain funding owing to constraints such as a lack of Shariah-compliant mobile facilities.

Abdalla Abdulkhalik, MD – Gulf African Bank said “Kenya is now a highly innovative, interconnected and fast-paced community that requires solutions on the go. All our digital offerings including Halal Pesa, seek to directly address this aspect. Our current strategy is focused on digitization for financial inclusion. Our aim is to provide instantaneous access to interest-free credit through Halal Pesa. We are glad that we could partner with a like-minded partner like Safaricom to advance this vision,”

Furthermore, according to a statement released by Safaricom, Customers who use the service to get finance will receive the requested money in full, with a 30-day payback period and a 5% commodity Murabaha margin.

Read: M-PESA Hits a Milestone of 30 Million Monthly Customers

Halal Pesa is available as a Mini App on the M-PESA Super App under the “Grow” option and by dialling *334# under “Loans and Savings” for all M-PESA subscribers.

“We remain keen on partnerships that enable us to provide a wide variety of financial solutions that meet the diversified needs of our customers further broadening financial inclusion to ensure that we leave no one behind. Gulf African Bank is a strategic partner that will enable us deliver affordable and convenient M-PESA services such as Halal Pesa that are Shariah-compliant in”4 accordance to the Islamic faith,” said Peter Ndegwa, CEO -Safaricom.

When Halal Pesa was launched, it became Indonesia’s first Shariah-compliant mobile and digital banking solution. For a 30 day payback period at a 5 per cent commodities Murabaha margin, customers who use the service to get finance will get the desired money in whole and on time. The Kenyan introduction further established the growth of Islamic banking as part of the core digital financial service of Safaricom.

April 3, 2022
M-PESA Hits a Milestone of 30 Million Monthly Customers

Safaricom has announced that M-PESA has reached a milestone of 30 million monthly users in Kenya. The achievement comes just a few days after M-PESA celebrated its 15th anniversary since its inception on March 6, 2007.

Kenya continues to be M-most PESA active market, with more than 30 million customers spread across Kenya, Tanzania, the Democratic Republic of Congo, Mozambique, Lesotho, Ghana, and Egypt.

Read Also : Moove Secures $105 Million To Expand Its Auto Lending Offerings

“M-success PESA has been built on a persistent emphasis on our customer’s demands, ensuring that we are always offering innovations that bring value to their lives.” We like to congratulate all of our consumers for helping us reach the milestone of 30 million monthly active customers. We are committed to continuing to explore and offer life-changing technologies in a digital world as the country turns digital with increasing smartphone usage.”

More About M-PESA

The development of many innovations over the years, including financial services such as M-Shwari, KCB M-PESA, and Fuliza, has fueled the growth in M-PESA client usage. Safaricom has also created local and global relationships with PayPal, AliExpress, and Western Union, allowing clients to send and receive money and make payments all over the world.

M-business PESA usage has exploded in the last two years, with the number of businesses accepting Lipa Na M-PESA payments more than doubling from 173,000 in April 2020 to more than 387,000 now.

Read Also : RavenBank Launches Digital Banking Platform To Make Banking Simple and Secure

Safaricom and Vodacom are concentrating their efforts on expanding the service in other areas, with the goal of bringing them up to Kenya’s level of maturity. M-PESA Africa will be launched in April 2020 by the two organizations, with the purpose of combining M-resources, PESA strategy, and roadmap across the continent.

M-PESA Africa is putting money into a shared platform that will allow all markets to offer the full range of M-PESA services and goods. It also developed an M-PESA Super App for both customers and businesses, with the customer app available in Kenya, Tanzania, Mozambique, and the Democratic Republic of Congo. M-PESA Africa is also trying to expand its continental and worldwide ties with other financial service providers in order to offer additional International Money Transfer solutions.

March 19, 2022