Mobile payments are more popular than cash in Kenya? Thanks to M-Pesa, a system launched in 2007, the African financial sector has been revolutionized by providing a simple and accessible alternative to traditional banking.
Introduction of M-Pesa
M-Pesa, which means “mobile money” in Swahili, is a mobile phone-based payment and money transfer service developed by Kenyan operator Safaricom, part of the international Vodafone Group. According to TechCrunch Africa, within its first few years, the system gained a broad user base, attracting over 17 million active customers in Kenya, which constituted approximately 38% of the country’s population.
Impact on Society
Thanks to M-Pesa, millions of Kenyans who did not have access to traditional banks were able to manage their finances without any problems. The service allowed for making payments, receiving wages, and even saving and borrowing money. Techpoint Africa reports that M-Pesa has significantly increased the number of people with a bank account or its equivalent in Kenya – from 25% in 2006 to over 83% in 2021.
The Future of M-Pesa and Technology Development
The rise in popularity of M-Pesa has contributed to the development of other innovative financial services across the African continent. Financial and technology companies are now focusing on developing products related to online banking, cryptocurrencies, and community financing. According to the latest investment report from Safaricom, M-Pesa’s development plans are focused on integration with global payment systems and expanding its offerings to include new financial and insurance services.
Sources:
– TechCrunch Africa
– Techpoint Africa
– Safaricom Investor Reports
– Rappler