MICROCAPITAL BRIEF: Safaricom’s M-Pesa Mobile Money Partners with PesaPoint to Increase Financial Access in Kenya

Safaricom, a Kenyan mobile network operator that runs the mobile money service M-Pesa, recently signed a deal with Paynet Group, an information technology company operating in Kenya and Zimbabwe, allowing customers of the 28 Kenyan institutions on the group’s PesaPoint automated teller machine (ATM) network to move funds via mobile phone. Before this agreement, 25 banks and 95 savings and credit cooperatives were already on the M-Pesa network. PesaPoint network banks allow access to cash 24 hours per day, with a maximum transaction size of KES 20,000 (USD 237).

As of 2011, M-Pesa reports having 15.2 million clients and 35,000 agent outlets across the country. PesaPoint has 80 ATMs in the country.

By Charlotte Newman, Research Associated

About M-Pesa
M-Pesa is a Kenyan mobile money service. The “M” stands for “mobile,” and “pesa” means “cash” in Swahili. Launched in 2007 by Safaricom Limited, a Kenya-based cellphone service provider, M-Pesa was developed by Vodafone Group Private Limited Corporation, a British multinational mobile network operator. As of 2011, M-Pesa reports having 15.2 million clients and 35,000 agent outlets across the country.

About PesaPoint
PesaPoint is a private company registered in March 2005. It is part of the Paynet Group, which also includes Paynet Kenya, EFT Kenya and Paynet Zimbabwe. The goal of PesaPoint is to provide Kenyans easy access to their funds by offering financial institutions the opportunity to provide automated teller machine (ATM) services to their customers. As of 2012 PesaPoint has approximately 500 ATMs countrywide at which Kenyans may withdraw cash, pay bills, access their M-Pesa accounts and perform bank balance inquiries, among other services.

Sources and Additional Resources:

AllAfrica: Kenya: M-Pesa Taps Into Pesapoint’s National Network,” http://allafrica.com/stories/201205240333.html

MicroCapital.org story, April 23, 2012, “MICROCAPITAL BRIEF: Cash Deposits in Kenyan Mobile Money Services Increase to $2.2b,” https://www.microcapital.org/microcapital-brief-cash-deposits-in-kenyan-mobile-money-services-increase-to-2-2b/

MicroCapital.org story, March 12, 2012, “MICROCAPITAL BRIEF: Kenyan Mobile Money Transfer Service M-Pesa Lowers Minimum Transaction Size to $0.12, Cuts Fees for Small Transfers,” https://www.microcapital.org/microcapital-brief-kenyan-mobile-money-transfer-service-m-pesa-lowers-minimum-transaction-size-to-0-12-cuts-fees-for-small-transfers/

MicroCapital Universe Profile: M-Pesa
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=M-Pesa

MicroCapital Universe Profile: PesaPoint
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=PesaPoint

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/

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