Comments on: Proof mobile money can make money? M-PESA earns serious shillings for Safaricom

By: How Significant are Airtime Distribution Savings to Profitability? « Mobile Money for the Unbanked

Wed, 06 Oct 2010 14:22:55 +0000

[...] that they’d have generated savings of $12.8 million (note that these figures are illustrative). By some estimates, that’s more than a quarter of what M-PESA generated in profits on a standalone [...]

By: VC4AFRICA — Blog — Ed Dodds added a blog post

VC4AFRICA — Blog — Ed Dodds added a blog post — Mon, 12 Jul 2010 16:53:14 +0000

[...] added a blog post Proof mobile money can make money? M-PESA earns serious shillings for Safaricom http://technology.cgap.org/2010/06/07/proof-mobile-money-can-make-money-m-pesa-earns-serious-shillin... You want proof mobile money can make money? Look to M-PESA, which according to Safaricom’s annual [...]

By: John Ngahu

John Ngahu — Wed, 09 Jun 2010 07:41:16 +0000

This is an interesting analysis. It will get even more interesting when Equity’s exclusivity with Safaricom for M-Kesho ends in one years time. Looking at it from a competitive angle, the M-kesho service should be available amongst various banks then the platform for competition amongst banks may shift to focus on low cost savings and credit accounts entirely dreliverd on a mobile platform. With the licensing of agent banking in kenya, MPESA agents could well have their strategic plans mapped out for them.

By: Mark

Mark — Tue, 08 Jun 2010 14:27:37 +0000

Jiten, I agree with most of your assessment, particularly the excitement around the Equity-Safaricom product partnership on M-Kesho.

But rather than acting as interference, bank partnerships may in fact help some operators achieve profitability, especially to drive uptake and usage where operators do not see the “perfect storm.”

By: jiten patel

jiten patel — Mon, 07 Jun 2010 12:36:10 +0000

Actions do speak louder than mere words, and M-Pesa makes a compelling statement. M-Pesa is a creature of a perfect storm, i.e. where a MNO was given an upper hand in offering such services without any involvement or interference from mainstream banks; something we may not likely see being allowed elsewhere.

The numbers show that with a combination of market share, agent network, and a good product it can be profitable.

For the future, M-Pesa with their recent link-up with Equity Bank to offer savings products is ratcheting up the pressure on banks and MFIs alike, however they would be well-served to make infrastructure improvements in their service reliability, and they offer the potential for increasing the heat on the likes of MoneyGram and Western Union for money transfer business in Africa.