PesaPoint acquires top M-Pesa agent for market share growth

What you need to know:

The firm has acquired PEP Intermedius, a network of 150 mobile cash outlets which offer a one-stop shop for four money transfer operators including M-Pesa, Airtel Money, yuCash and Orange Money.
The PEP Intermedius mobile money shops will now be rebranded to PesaPoint and will widen its service offering to include agency banking, selling airtime and micro-insurance.
PesaPoint’s mobile money agency business will be tasked with growing the product portfolio offered in its kiosks.

Payment solutions firm Paynet, which runs the PesaPoint ATM network, has acquired a top money transfer service agency to widen its reach for an undisclosed amount.

The firm has acquired PEP Intermedius, a network of 150 mobile cash outlets which offer a one-stop shop for four money transfer operators including M-Pesa, Airtel Money, yuCash and Orange Money.

The PEP Intermedius mobile money shops will now be rebranded to PesaPoint and will widen its service offering to include agency banking, selling airtime and micro-insurance.

PEP’s mobile money shops are located in Nakumatt supermarkets and shopping malls, which offer high traffic and service beyond normal business hours.

Bernard Matthewman, chief executive of Paynet Group, said the deal will allow PesaPoint to exploit PEP’s network.

“There is significant potential for this business to grow rapidly both in terms of the number of locations as well as the range of financial service providers it serves,” said Mr Matthewman.

PEP Intermedius was founded in 2004 by Frederik Eijkman, a former Dutch corporate lawyer who has been living and working in Kenya since 1998. Mr Eijkman will now head the merged business, which now has over 1, 450 agent locations across the country.

PesaPoint’s mobile money agency business will be tasked with growing the product portfolio offered in its kiosks.

“Like a financial supermarket we will bring the broadest possible range of services to consumers including mobile money, agency banking, bill payment, airtime sales, ticketing, lotteries and even micro-insurance,” said Mr Eijkman.

In 2010, the Central Bank of Kenya (CBK) allowed banks to start offering services through agents such as retail stores and service stations to deepen access to financial services in a country where a third of the population lacks access.

The bank agents had grown to 21, 816 units in September against a branch and ATM network of 1, 272 outlets and 2, 381 in December 2012.

PesaPoint’s takeover of PEP highlights the lucrative nature of Kenya’s mobile money business which grew by a fifth to gross Sh1.9 trillion last year in total value of transactions according to data from the CBK.