Market News

M-Pesa transfers across the borders hit Sh290 billion

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Summary

  • M-Pesa global, a Safaricom service that enables M-Pesa registered customers to send and receive money from countries across the world, booked a 75.8 percent growth in the financial year ended March from Sh164.78 billion in the previous period.
  • Safaricom disclosed that one-month active M-Pesa global customers have risen by 49.1 per cent from 552.16 million to 823.1 million in the review period.
  • The volume of M-Pesa global transactions rose by 56.7 per cent to 23.71 million, showng the increased usage.

The value of M-Pesa transactions between users in Kenya and those outside the country have grown to Sh289.69 billion on the rising popularity of cross boarder deals.

M-Pesa global, a Safaricom service that enables M-Pesa registered customers to send and receive money from countries across the world, booked a 75.8 percent growth in the financial year ended March from Sh164.78 billion in the previous period.

Safaricom disclosed that one-month active M-Pesa global customers have risen by 49.1 per cent from 552.16 million to 823.1 million in the review period.

The volume of M-Pesa global transactions rose by 56.7 per cent to 23.71 million, showng the increased usage.

“The service has continued to gain momentum and current partnerships include Western Union, MoneyGram, Ria, WorldRemit, Wave, Remitly among others,” said the telco.

M-Pesa global has saved users the need to visit a bank or pay to receive money sent to them from overseas countries such as the US, UK, Europe, since they receive it via mobile phone wallet.

The rise in number and value of M-Pesa global transactions lifted Safaricom’s revenue from the service to Sh2.01 billion from Sh1.32 billion.

M-Pesa global’s revenue accounted for 2.4 per cent of the Sh82.65 billion that Safaricom earned from mobile money transactions during the review period.

Safaricom operates the remittance service through Safaricom Money Transfer Services Limited in partnership with third party international money remittance providers.

Revenue is earned from transaction fees charged to customers for international money transfers.

M-Pesa global also allows customers to make payments far beyond Kenya and therefore participate in international e-commerce.

Customers are charged Sh100 for transfers of up to Sh5,000 and Sh500 for transfers of between Sh35,001 and Sh70,000.

Safaricom launched M-Pesa in 2007 and has been using the service to launch new services and innovate the existing ones, leading to increased usage.

Started as a person-to-person cash transfer service, the platform has now grown to offer payments, credit, international remittances and business analysis and support.

The increased usage has translated to more earnings, with M-Pesa revenue overtaking voice revenue for the first time in the financial year ended March 2021.

Even though M-Pesa revenue declined 2.1 per cent to Sh82.64 billion in the year ended March, it surpassed sales from voice which recorded a larger drop of 4.6 per cent to Sh82.55 billion.

Safricom chief executive Peter Ndegwa said last week that the mobile money platform’s dominance will increase in the coming years, reflecting its growth opportunities and the maturity of the voice business.