MICROCAPITAL BRIEF: Vodafone, ICICI Bank of India Launch Mobile Payments of Government Health Care Subsidies via M-Pesa

Vodafone Group Private Limited Corporation, a British mobile network operator, and ICICI Bank, a commercial bank in India, reportedly have launched a pilot service to deliver subsidies to individuals via M-Pesa, a mobile-money system developed by Vodafone from Janani Suraksha Yojna, a government scheme to decrease neo-natal and maternal deaths by providing delivery and post-delivery care. Under the terms of the deal, Mobile Commerce Solutions Limited (MCSL), Vodafone’s subsidiary in India, will act as a business correspondent for ICICI Bank to “facilitate the payment of mobile-based subsidies to the beneficiaries via its agents”[1]. As of 2014, the program is available in the city of Ranchi.

Beneficiaries of this subsidy with an active mobile phone number will be able to receive the money in their M-Pesa mobile wallets. Information regarding the withdrawal procedure and the amount of the subsidy will be made available to the customers through short message service (SMS), which is also known as text messaging. The money can be withdrawn at Vodafone retail outlets.

As of 2013, Vodafone reported total assets of GBP 92.3 billion (USD 155 billion) and a customer base of 404 million people in approximately 30 countries. As of 2013, ICICI Bank reports total assets of INR 5.3 trillion (USD 89 billion). As of 2013, M-Pesa serves approximately 16 million clients through 79,000 agent outlets in Kenya, 5 million clients in Tanzania and a total of 5.6 million in South Africa, India and Mozambique.

By Juan Blanco, Research Associate

About ICICI Bank Limited

ICICI Bank Limited, a banking and financial services company, operates 2,773 branches and 9,363 automated teller machines (ATMs) in India and has a presence in 18 other countries in Europe, Asia, the Middle East and North America as of 2012. ICICI Bank offers personal banking, business banking, agricultural banking, investment banking, life and non-life insurance, venture capital and asset management services. As of 2013, ICICI Bank reports total assets of INR 5.3 trillion (USD 89 billion). ICICI Bank’s equity shares are listed in India on the Bombay Stock Exchange and the National Stock Exchange of India Limited, and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

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, 5 million clients in Tanzania and a total of 5.6 million in South Africa, India and Mozambique.

Sources and Additional Resources

[1] Voice and Data, “Vodafone, ICICI Bank launch M-pesa in Ranchi,” May 2014, http://www.voicendata.com/voice-data/news/214618/vodafone-icici-bank-launch-m-pesa-ranchi

MicroCapital, March 20, 2014, “MoneyGram, Vodafone Partner to Enable Global Mobile Money Transfers Via M-Pesa,” https://www.microcapital.org/microcapital-brief-moneygram-vodafone-partner-to-enable-global-mobile-money-transfers-via-m-pesa/

MicroCapital, June 12, 2013, “ICICI Bank, Vodafone Bring M-Pesa Mobile Money Service to India,” https://www.microcapital.org/microcapital-brief-icici-bank-vodafone-bring-m-pesa-mobile-money-service-to-india/

MicroCapital, December 7, 2011, “HDFC Bank, Vodafone Launch Mobile Banking Service in India,” https://www.microcapital.org/microcapital-brief-hdfc-bank-vodafone-launch-mobile-banking-service-in-india/

MicroCapital, February 8, 2011, “State Bank of India, ICICI Bank Partnering With Mobile Providers Bharti Airtel, Vodafone Essar to Expand Banking Options,” https://www.microcapital.org/microcapital-brief-state-bank-of-india-icici-bank-partnering-with-mobile-providers-bharti-airtel-vodafone-essar-to-expand-banking-options-3/

MicroCapital Universe Profile: ICICI Bank Limited?https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ICICI+Bank

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

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