Rise of mobile cash transfer service

For this innovation, Safaricom has won enough accolades for such an original idea which reminds me of John Stuart Mill who once said that, “All good things which exist are the fruits of originality.”

According to the Central Bank of Kenya statistics, In July 2007, there were 268,499 registered M-pesa customers and by July 2009, the number of registered customers was 7,387,980—an increase of 2,652 per cent.

In July 2007, the total value of monthly transactions was Sh1.065 billion ($14.2 million).

This figure was Sh40.176 billion ($535.6 million) in July 2009.

The rapid growth of mobile phone banking in Kenya is largely an evidence of the great need for low-cost financial services in developing countries.

No wonder some banks have been accused of pushing for gagging this momentous growth through regulations that might tilt the balance in their favour.

The Central Bank of Kenya has undertaken various strategies to enhance the oversight capacity effectively keeping abreast of innovation and technologically driven financial services.

This is quite necessary to avoid pitfalls that might crop up as the product grows.

South Africa’s MTN recently announced plans to establish a bank account on mobile phones that will even come with an optional credit card.

The service will graciously be launched in other countries where MTN operates.

Indeed, the growth opportunities in M-commerce are as many as you can lay your hands on.

The most interesting aspect also is the way the way the services have been adopted by the not-so-rich in the society.

The usage has also cut across generations and as you will get a young urbanite in the cities using it so is the grandmother in the countryside.

In Kenya, M-pesa first became popular as a way for young, urban migrants to send money back to their families in the rural areas.

It is now virtually used to pay for any service from school fees, settling electricity and water bills among others.