M-PESA Revolutionize M-banking and threatens Banks
Innovations
When Safaricom-Vodafone launched the M-pesa revolution many did not imagine that this new innovation in the Mobile Telephony industry would emerge to become a force to reckon with in the mobile banking industry.
MPESA
M-PESA is a Safaricom service allowing you to transfer money using a mobile phone. Kenya is the first country in the world to use this service, which is offered in partnership between Safaricom and Vodafone. M-PESA is available to all members of the public, even if you do not have a bank account or a bankcard.
Millions
Today Mpesa is transacting hundreds of millions of shillings across the country enabling many Kenyans send and receive money in the most convenient of ways.
Unbanked
Infact this revolution has enable many unbanked kenyans who may have been averse to opening bank accounts maintain virtual accounts in the name of Mpesa accounts that ar also connected to their mobile numbers.
Profitability
The company has made unparalled substantial profits in recent years and this is set to even rise tio unprecedented levels come the next fiscal years.
Market Share
Though the Kenyan market is abuzz with the entrance of new players Orange and Econet alongside Zain network, Safaricom is still the giant with amazing innovative team and this company is set to go places. Recently it launched a bill payment service in partnership with some corporate players and customers can at the comfort of their living rooms pay their bills. What morwe do one need.
Banks are shaking with every new day of Safaricom innovation.
Stocks
Thought it shares have been doind badly at the bourse,this is partly due to the global financial crisis and partly due to oversupply of its shares at the market a miscalculation that was done by the transaction advisors during the listing process. However, the future of this company is bright and with foreign investors keen on investing in Kenya as an emerging market with alot of funds, This share is still a good long term bet. Trust me!
5 comments:
Let me brag a little for The Standards' now-defunct FS, which broke this story six months before Mpesa was launched, predicted it was the Next Big Thing, reported it would threaten banks and operate without legislation unlike in Europe. There was a time business reporting was fast! It's a pity nobody remembers.
they have made local money transfer redundant - what if they get a UK and US transfer licensce? i wonder how postbank, d-trust, co-op and postbank and otehrs are makign from westen union and moneygram these days
- and after sitting through the agony of waiting for a cheque to clear (effectivly takes a week), I wonder how any small business can rely on cheques when they can get paid instantly (so it wil be interesting to see how many cheques pass the CBK clearing house these days compared to two years ago)
@ Banks-I concur with you bankelele that if they get the license to traverse the international boundaries they shall be a force to reckon with.Moneygram , Posta pay may be in for a rude shock. Dont they realize they only operate during the day? whereas Mpesa operates even at night in the compfort of your living room???
@ Propaganda i agree many have alluded to their growth but that had neve been more 'realler' than now. Don you think?
M-PESA's recent deal with Western Union is helping them to cross international boundaries.
I like your post.
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