Safaricom, a telecommunications provider in Kenya, recently decreased the transaction fees that the firm charges for its “person-to-person” fund transfers via M-Pesa, a mobile money service developed by Vodafone, a British multinational telecommunications company. Safaricom customers sending funds in amount between KES 10 (USD 0.10) and KES 1,500 (USD 17) will be charged fees that are up to 67 percent lower than before. The company has also implemented a fixed 0.8 percent transaction fee for sending money transfers in amounts exceeding KES 1,501 (USD 17). The new rates, effective from August 21, 2014, can be found here: http://www.safaricom.co.ke/personal/m-pesa/my-m-pesa-account/tariffs.
As of 2013, Safaricom has 17 million subscribers. As of 2013, M-Pesa served approximately 16 million clients through 79,000 agent outlets in Kenya, 5 million in Tanzania and an unspecified number in Eurasia and elsewhere in Africa.
About M-Pesa
M-Pesa is a mobile money service that was launched in Kenya in 2007 and has since been replicated in Eurasia and elsewhere in Africa. The “M” stands for “mobile,” and “pesa” means “cash” in Swahili. Launched in Kenya by Safaricom Limited, a Kenya-based cellphone service provider, M-Pesa was developed by Vodafone Group Private Limited Corporation, a British mobile network operator. As of 2013, M-Pesa serves approximately 16 million clients through 79,000 agent outlets in Kenya and 5 million clients in Tanzania. As of the same year, M-Pesa is also available in Afghanistan, India, Egypt, Lesotho, Mozambique and parts of Eastern Europe. M-Pesa was relaunched in South Africa in July 2014 after first being introduced in 2010 and suspended in early 2014.
By Tejas Jain, Research Associate
Sources and Additional Resources:
Safaricom, “Safaricom Cuts M-Pesa transaction Fees for Low and Medium Value Cash Transfers,”
http://www.safaricom.co.ke/about-us/media-centre/press-releases
https://www.microcapital.org/safaricom-britam-changmka-microinsurance-to-offer-mobile-health-insurance-in-kenya/
MicroCapital: “Kenya Commercial Bank, Safaricom’s M-Pesa Launch Mobile App KCB M-Benki to Increase Financial Inclusion,” November 15, 2013,
https://www.microcapital.org/microcapital-brief-kenya-commercial-bank-safaricoms-m-pesa-launch-mobile-app-kcb-m-benki-to-increase-financial-inclusion/
MicroCapital: “ICICI Bank, Vodafone Bring M-Pesa Mobile Money Service to India,” June 12, 2013, https://www.microcapital.org/microcapital-brief-icici-bank-vodafone-bring-m-pesa-mobile-money-service-to-india/
MicroCapital Universe Profile: M-Pesa
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=M-Pesa
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