Jun 15, 2011

The Evolution of M-PESA

M-PESA'S initial main offering was p2p money transfer enabling users to send money to anyone with a mobile phone. M-PESA filled a niche which previously was essentially handled via informal channels- through personal trips, friends, relatives,and public transport.

Safaricom based the initial launch of the M-PESA service on the 'send money home' proposition. This targeted city dwellers with the need to send money to their relatives in the rural areas.

In recent months Safaricom has increasingly opened up M-PESA to offer more services. Since its launch in March 2007, M-PESA has spread quickly, and has become the most successful mobile-phone based financial service in the developing world.

M-PESA customers can now pay bills, pay for goods and services, deposit and withdraw money from bank, pay loans, buy water, pay school fees,buy airtickets, buy insurance.

This evolution of the M-PESA service has enabled up to 40 per cent of the adult population in Kenya get access to fiancial services. M-PESA is definately on the right path, and my hope is that the service will keep evolving untill the problem of financial inclusion in Kenya is successfully tackeld.