In Romania, UK-based telecommunications firm Vodafone has been expanding M-Pesa, its mobile money service that was first launched in 2007 in Kenya, from the pilot stage to a complete rollout. The service enables Romanians to transfer money via their mobile devices, targeting the estimated 35 percent of Romanians that do not have traditional bank accounts.
Jack Kent, an analyst for IHS Technology, a US-based research and consulting organization, argued that: “Romania is one of the places where M-Pesa stands the best chance of gaining adoption,” compared with other European countries, including France, Germany or the United Kingdom, where financial services are used more widely.
As of 2013, M-Pesa serves approximately 16 million clients through 79,000 agent outlets in Kenya. Vodafone has expanded the service to the Democratic Republic of the Congo, Egypt, Fiji, India, Kenya, Lesotho, Mozambique, Romania, South Africa and Tanzania.
By Simon Pfanner, Research Associate
About M-Pesa
M-Pesa is a mobile money service that was launched in Kenya in 2007 and has since been replicated in nine additional countries. Launched by Safaricom Limited, a Kenya-based cellphone service provider, M-Pesa was developed by Vodafone Group Private Limited Corporation, a British mobile network operator. The “M” stands for “mobile,” and “pesa” means “cash” in Swahili. As of 2013, M-Pesa serves approximately 16 million clients through 79,000 agent outlets in Kenya. Vodafone has expanded the service in the Democratic Republic of the Congo, Egypt, Fiji, India, Lesotho, Mozambique, Romania, South Africa and Tanzania. M-Pesa was relaunched in South Africa in July 2014 after first being introduced in 2010 and suspended in early 2014.
About Vodafone Group
Vodafone Group, headquartered in London, is a British multinational telecommunications company. It operates in about 30 countries and has partner networks in approximately 50 additional countries. As of 2013, Vodafone reported revenue of GBP 44.4 billion (USD 69 billion), operating profit of GBP 12 billion (USD 18.7 billion) and a customer base of 403 million people in approximately 80 countries.
Sources and Additional Resources
[1] CNN, Africa’s mobile money makes its way to Europe with M-Pesa
MicroCapital, September 16, 2014, Safaricom Lowers M-Pesa Transaction Fees for Electronic Person-to-Person Transfers in Kenya
MicroCapital, August 12, 2014, Vodacom Relaunches “M-Pesa” Mobile Money System in South Africa
MicroCapital, May 27, 2014, Vodafone, ICICI Bank of India Launch Mobile Payments of Government Health Care Subsidies via M-Pesa
MicroCapital Universe Profile: M-Pesa
MicroCapital Universe Profile: Vodafone Group
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