M-PESA - Competitor Profile

M-PESA - Competitor Profile

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.

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

Scope

• In March 2007, M-PESA launched in Kenya.
• In August 2013, M-PESA launched house rent payment service Lipa Kodi.
• In November 2017, Safaricom launched ecommerce marketplace Masoko in Kenya, offering users M-PESA’s online payment service as the main payment method.
• 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.

Reasons to Buy

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