Mpesa, the Safaricom’s money platform is currently processing transactions to a tune of Ksh. 1.6 trillion in Kenya and other African countries it is present making it the largest payment platform in Africa.
This was disclosed by South Africa’s Vodacom Group which owns 50% of the money transfer platform while Safaricom owns the remaining 50%.
In its annual report, Vodacom notes, “Since launching in 2007, M-Pesa has grown to have the largest reach of any financial services provider in Africa, with 39.6 million active customers, including Safaricom, up 9.7 percent year-on-year.”
The reports adds that, ”Customers in our international markets, including Safaricom, now process more than $14.7 billion (Sh1.6 trillion) a month in transactions through the platform, making it Africa’s biggest payment platform”.
Vodacom and Safaricom both own Mpesa after earlier acquiring it from London based parent firm Vodafone Group Plc through their investment vehicle M-Pesa Global Services Limited.
Mpesa’s growth has continued to grow in Kenya, it chief market and other Afican countries. The report notes that,” This performance was underpinned by robust revenue growth in Mozambique (59.4 percent), strong growth in the DRC (48.3 percent) and Lesotho (27 percent), and a solid performance in Tanzania (7.4 percent), despite intensifying competitive pressure and a more challenging regulatory environment.”
Mpesa was also in the South African market but it was discontinued after the mobile payment service failed to take off in the South African country.
Mpesa plans to expand its market presence of the African market at it seeks to cement its position as a global payment giant. Of late it has been eyeing the Ethiopia Market and seem focused on not letting the opportunity go by.
Missed Revenue opportunities
Mpesa earning this year are expected to take a hit due to a waiver of fees of transactions below Ksh.1000.00 that was put in place to mitigate the effects of the COVID-19.
“We have made person-to-person M-Pesa transfers free up to threshold in most of our operations, to enable a contactless payment method and ensuring that traders can continue,” the reports notes.
The company says it projects to lose up to Ksh.1.9 billion in the Kenyan market due to waiver in transaction fees.
Mpesa’s earnings come from charges imposed on transactions such as sending and withdrawing money, Fuliza, loans and other services.
Parts of this article have been adapted from the Business Daily a publication of the Nation Media House.