Zain to Launch Zap ending MPESA Monopoly

After spoiling for fight with the regulator, including the Central Bank of Kenya, Zain is now set to launch its money transfer service dubbed Zap. The launch is set to end MPESA's monopoly in the mobile telephony money transfer and enhance convergence in service delivery to customers.

MPESA
When Safaricom launched its debut mobile money transfer service a few years ago, many didnot imagine that its growth would be phenomenal. After tailoring its services to banking the unbanked rural population as well as facilitating secure and real time money transfer the business has grown by leaps and bounds and the customer base now stands at over 5Million with substantial daily remittances going through the system.

Zap
After the unsuccessful launch of the Money transfer service, Sokotele, the company went back to the drawing board resulting in the launch of Zap in partnership with Standard Chartered bank and a host of other partners across the east african region.

Banks Jittery
It is indeed evident that the successfull roll out of MPESA money transfer service did send jitters across the banking sector players. Pundits will therefore be waiting to see how this new product that has more services converged including e-banking will be received by banks. As competition hots up, the major beneficiary shall be the customer as more services will be brought closer and closer at relatively lower costs.

Other players
As Zain is rearing to go with the launch of Zap, other players in the mobile telephony industry including Orange and Econet will be keenly watching and hopefully launch other innovative products fashion in the form of MPESA and ZAP.

Business Costs
Against a backdrop of these new products, many players in the mobile telephony and the telecommunication sector have been petitioning the government for reduction in the cost of doing business in Kenya. These issues revolve around poor infrastructure and moreso the road network, increased cases of insecurity and unreliable energy supplies leading to significant costs incurred by these companies. The immediate resolution of the above will go a long way toward spurring investments in Kenya as an East African hub for business and an emerging market in Africa.

More Jitters in Banking Industry as MPESA Reigns

More jittersThe MPESA phenomenon ha continued to cause jitters and sleepless nights to many players in the banking industry who may have been lobbying the Finance minister to crack the whip.

Audit
Yesterday Hon Michuki, the Finance Minister joined the fray and in a rather stern statement called for an audit of MPESA by the Central Bank of Kenya on concerns about the safety of users’ money.

Regulations
M-Pesa and Zain’s equivalent, Sokotele-Now Zap Brand have been operating outside Central Bank’s (CBK) regulation unlike other money transfer services pending the passage of a National Payments Systems Bill.

Popularity
The money transfer system, launched in March 2007, has become popular with the unbanked population serving as a deposit account for some, hence causing jitters in the banking industry.

Money laundering
The phone-based electronic money transfer has been viewed as being prone to abuse by money laundering which is an illegal practice. Further concerns of the likely collaspse of the system have been rending the air and those shouting loudest are the banking industry players. Any guess?

Money Transfer
The MPESA daily money transfer service has been growing by the day and currently over 20B have been transferred through the System snce it was launched. Its registered account users now stand at over 4 Million and the number is growing by the day.

Parting shot!
The successful takeup of MPESA service has clearly demonstrated that Kenyans demands easily accessible, secure cash payment services in this fast growing emerging market and the regulators must take heed not to stiffle the growth with unneccessary and ill-advised regulations.

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!