Vodacom South Africa, which is controlled by UK-based Vodafone Group, reportedly has relaunched its M-Pesa mobile payment system in the country. Originally created and marketed by Vodacom in 2007 in Kenya, M-Pesa was made available in South Africa in 2010, but was suspended earlier in 2014 due to a lack of customer interest. The relaunched system is based on a “voucher system for topping up a mobile wallet” and allows customers to withdraw funds without using a card at automated teller machines (ATMs) and with an M-Pesa Visa card at electronic points of sale (EPOS).
According to a statement attributed to Herman Singh, the managing executive of mobile commerce at Vodacom, “the registration process is significantly quicker than [M-Pesa] had the first time.” The new service allows customers to buy the M-Pesa Visa card off the shelf, connect it to their electronic wallet and receive immediate approval for usage under the South African government’s Financial Intelligence Centre Act (FICA).
Shameel Joosub, the CEO of Vodacom Group, reportedly stated, “What we want to do in South Africa is build the same ecosystems…as Kenya. We are recruiting not just customers but businesses as well.” At the time of launch, Vodacom had approximately 5,000 informal and 3,000 formal traders signed up to use the M-Pesa system [1].
As of March 2014, Vodacom reported total assets of ZAR 60.7 billion (USD 5.7 billion) and 57.5 million customers in Africa [2]. As of 2013, M-Pesa served 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.
By Benjamin Krupp, Research Associate
About Vodacom
Vodacom is a South Africa-based mobile communications company that is 65-percent owned by UK-based telecommunications company Vodafone. As of 2014, Vodacom had formal operations in the Democratic Republic of the Congo, Lesotho, Mozambique, South Africa and Tanzania, and it had offices in eight other African countries. As of March 2014, Vodacom reported total assets of ZAR 60.7 billion (USD 5.7 billion) and 57.5 million customers in Africa.
About M-Pesa
M-Pesa is a mobile money service that was launched in Kenya in 2007 and has since been replicated elsewhere in Africa and Asia. 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.
Sources and Additional Resources
[1] htxt.africa: M-PESA’s Back: Vodacom Relaunches Mobile Money in SA
[2] Vodacom: Financials 2014
MicroCapital, June 5, 2014: Commercial Bank of Africa, Vodacom Tanzania Launch Mobile Money Service “M-Pawa”
MicroCapital, March 20, 2014: MoneyGram, Vodafone Partner to Enable Global Mobile Money Transfer s Via M-Pesa
MicroCapital, June 10, 2013: Vodacom Mozambique Launches M-Pesa Mobile Money Service
MicroCapital Universe Profile: Vodacom
MicroCapital Universe Profile: M-Pesa
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