In 2006prior to the launch of mpesa, the leading local mobile money transfer. Jan 07, 2015 as mobile banking soars in africa, swindlers target anyone with a cellphone. Starting a money transfer company sample business plan template. Mobile phones, money transfer, mpesa, impact, smallholder farmers, kenya. While translating it to figures per minute, mobile money transactions in kenya hit an average of sh14. Send money to mtn mobile money accounts worldremit. Mobile money transfer mmt has marked a new frontier in mobile phone technology with an ever increasing number of micro businesses using it in their transactions to enhance performance. This implies that 64 out of 100 inhabitants had access to and used mobile money transfer services.
Why mobile money is popular in africa, but not in the us african countries like kenya have leapfrogged traditional banking systems by using mobile phones to. Feb 28, 2020 available to download in png, pdf, xls format. The kenyan governments announcement of a new 10 percent tax in march 20 threatened the future prospects of mpesa, safaricoms mobile money transfer service, which had revolutionized the way money moved in kenya. Its started as a frugal innovation african mobile money story is known to have started in kenya in 2007 when safaricom launched its mpesa solution for peer to peer money transfer. From money transfer system to mobile money ecosystem. Mobile banking is a financial service often available in developed countries, but not in most. Nov 27, 2018 the tieup of kenyas mpesa with paypal and western union, coupled with two of the largest cellular operators mtn and orange working on a mobile wallet that operates across networks, have. Pdf mobile money transfer in kenya ronald m khavagali. How mobile money transfer is shaping kenyas economy your money. With this article, we wanted to let you know that is a better and cheaper way to send money to kenya, and this involves you to stop using your local banks. All you need is an internet connection and you can. You can send mobile money to kenya that they can then use to pay bills, buy products in stores, transfer to other mobile wallets and even withdraw by visiting a local agent. Instant cheap money transfer to mpesa mobile and any bank account. In kenya, developers are already targeting mpesa customers with smartphone apps, though primarily.
In may 2008, 14 months after the launch, mpesa in kenya had 2. The funds you send are credited to mpesa and equitel accounts instantly, so your recipient is never left out of pocket. The benefits of mobile money in kenya more a kenyan passenger uses a mobile phone and a bebapay card, a mobile phonebased money transfer service. This trend is providing money transfer services to millions of previously under served. How mobile money transfer is shaping kenyas economy.
On 15 august the cabinet secretary for the national treasury issued a legal notice1 officially giving life to the national payment systems regulations, 2014. Mpesa is a mobile phone based money transfer system in kenya which grew at a blistering pace following its inception in 2007. In many markets, individual outlets may serve several mobile money service providers. The latest report from the central bank of kenya shows that mobile money transfer has hit ksh.
These relate to branding and messaging, ease of use, consistency of customer experience, agent monitoring, instantaneous customer registration, free deposits, ability to send money to nonregistered customers, and agent channel growth. Discover the best international money transfer apps below for iphone and android. Majority in countries surveyed have access to mobile phones. Although, as a blogger at kopokopo that provides merchant services recently remarked, payment technology doesnt sell itself. When health care organizations can receive payments more quickly and more transparently, they can provide better service. The number of uses to which mobile money transfer mmt can be. The research explores the best practice for service deployment, identifies optimal markets for growth, assesses key player capabilities, and provides the most indepth forecasts for a range. Send money, pay and get paid via one global account. Currently the mobile money market size is about 15 million users transferring kshs. Money is added instantly to mtn mobile money accounts.
Not only is this an extremely quick, safe and simple way of transferring money to kenya, but it also allows your recipient to enjoy cashless convenience wherever they are. Mpesa mobile money transfer service in kenya, best online. Two very popular money transfer companies are the paypal and western union wu companies. Mpesa was used to transfer money to people trapped in nairobis slums at the time, and some kenyans regarded mpesa as a safer place to store. This paper presents ten key service design features that have facilitated the rapid adoption and active use of mpesa in kenya.
Feb 27, 2020 mobile money transfer subscriptions in kenya 20182019, by quarter number of mobile money subscriptions in uganda 20172018 number of payments in the netherlands with a smartphone or tablet 2014. The free account mpesa is offered by safaricom kenya, a leading mobile phone service operator and is a technological breakthrough say the operators. The tax measures in addition to budget cuts are intended to cover increasing stateemployee wages. The benefits of mobile money in kenya best countries us news. Managing a mobile money agent network a handbook for mobile network operators this is the third and final section of a handbook on agent networks developed by the gsma.
This paper focuses specifically on kenya, a country that is often considered to be home to the worlds most developed mobile money system. Safaricom launched mpesa in kenya in march 2007 and has since become the most famous and probably the most successful implementation of mobile money service to date. The kenyan mpesa mobile telephone banking service was. You can now send money easily and securely, and get your first 3 transactions fee free.
Transfer money online to family and friends abroad with worldremit for a low cost. The global leader in mobile money is kenya, where mobile network operator safaricom launched mpesa in 2007. Mobile money services started in kenya in 2007 through m pesa m for. Why mobile money is popular in africa, but not in the us. The paper can be downloaded free of charge from ssrn at. If one were to paint a picture of the kenya that most of the world is familiar with, it would likely include the wildlife landscapes like the maasai mara national reserve, where youre guaranteed to see some of the big five, including lions, leopards, and elephants. Send money online worldremit money transfer send money.
Anyone can send money in all over kenya through mpesa. Money transfer from one persons account to another account was formerly the sole duty of banks. Kenya mobile money subscriptions 20182019 statista. Chapte r 20 mobile payments go viral mpesa in kenya. Kenya mobile money market assessment nethope solutions center. This opens up huge markets for financial institutions interested in offering value added services. Jan 05, 2017 the benefits of mobile money in kenya more a kenyan passenger uses a mobile phone and a bebapay card, a mobile phonebased money transfer service that allows transit passengers to pay their bus. Mobile money operators typically leverage an agent network to. Pdf recent innovations in the telecommunication have proven to be a boom for the. The lives of many kenyans are being transformed by an innovative mobile phone money transfer service. The net generation of digital financial inclusion t here are multiple paths by which greater mobile internet access and smartphone adoption can impact digital financial inclusion, particularly mobile money and mobile financial services. Obopay is the most advanced, secure and scalable mobile money platform. Mobile money transfer subscriptions in kenya 20182019, by quarter number of mobile money subscriptions in uganda 20172018 number of payments in. Mobile money services design and development for financial.
How mobile money has changed lives in kenya page 2 of 3 in addition to the benefits to households, realtime payment transactions also benefit service providers. Oct 25, 2012 kenyas government recently announced a 10percent excise duty will be charged on fees for cash transactions executed using mobile money transfer systems. It enables subscribers to send large volumes of money in an instant transaction. This was revealed after data from the communications authority of kenya analysed data relating to mobile money transfers from mpesa, airtel money, orange money, equitel money, mobikash and tangaza. Please check that the recipient already has a mobile money account. Pdf impact of mobile phonebased money transfer services in. Mobile money services started in kenya in 2007 through mpesa m for. As well as airtime, it is also possible to send money directly to the mobile phone of a family member or friend in ghana. Financial inclusion enabler itut technology watch report may 20 globally, more than 2. Transfer money with ease and peace of mind with mtn mobile money transfer see our transfer and transaction rates here. This study sought to determine the impact of mobile and internetbanking on performance of financial institutions in kenya where the survey was conducted on financial institutions in nairobi.
Publicdonor cash transfers using mobile money aker et al. Send money to kenya international money transfer s. Ignacio mas and dan radcliffepesa is a smallvalue electronic payment and storeofvalue system in k enya accessible from ordinary mobile phones. Mpesa mobile money transfer service in kenya, best. Subscribe to our youtube channel for more great videos. Mobile financial services, known as mobile money, allow unbanked people to use their phones as a bank account. Specifically, in kenya and mexico access to traditional financial services is relatively low, and mobile phone diffusion and latent demand for financial services is high. Safaricoms mpesa has a new rival in pesalink from kenya. Low levels of financial inclusion represent a barrier to socioeconomic development in developing countries. Enabling mobile money transfer the central bank of kenyas.
Free phones would not only help the poorest to overcome the first hurdle. We examine how mpesa is used as well as its economic impacts. Choose the account to transfer from and the account to transfer to by swiping left and right between your list of eligible accounts. Now in use by 9 million customers40 percent of kenyas adult. Obopay mobile money platform mobile money services. Mobile money transfers are one of the most popular ways to send money to kenya. In a typical mobile money system, agents purchase efloat from the mobile money operator by delivering physical cash to the operator.
Kenya sets world first with money transfers by mobile. Enabling mobile money policies in kenya fostering a. Sage business cases mpesa and mobile money in kenya. Usage experiences in kenya by adrian d kamotho njenga. Equity money transfer to africa send money to kenya.
Safaricoms mpesa has a new rival in pesalink from kenyas. Note that there can be multiple regulators involved in the regulation of mobile money, the most common being financial and telecommunications regulators. Mobile money services a bank in your pocket an overview of trends and opportunities 7 their accounts and to perform transfers and payments. Smiles mobile remittance transfer money from japan. As mobile banking soars in africa, swindlers target anyone. Other sections discuss building and incentivising agent networks, and there will be an accompanying article on the regulation of agent networks. The benefits of mobile money in kenya best countries.
With mobile technology, banks can offer a wide range of services to their customers such as doing funds transfer while traveling, receiving online. This system is called mpesa, a combination of mobile and. The mobile money market in kenya is dominated by one major player, safaricoms. Mpesa is a mobile money transfer service in kenya, its one of the best online payment options. Companies like currencies direct, world first, transferwise, azimo, and ofx have mastered the art of the swift, hassle free registration process, and easy apps and online systems to transfer money on the fly. Mobile phone banking in practice the terms mobile phone banking and mobile banking mbanking are used interchangeably. Pdf this study contributes to pioneering literature on the impact of mobile phonebased money transfer, especially in agriculture.
Survey, 150 mobile money systems in 72 countries have been deployed, and another 109 projects are in planning phases penicaud 20. There are approximately 60 million mobile money users in the world, which means that almost one in three is a kenyan. The tieup of kenyas mpesa with paypal and western union, coupled with two of the largest cellular operators mtn and orange working on. Anti money laundering laws and regulations kenya covers issues including criminal enforcement, regulatory and administrative enforcement and requirements for financial institutions and other designated businesses in 31 jurisdictions. A money transfer business helps to aid the transfer of money between two persons. Before that, due to a low rate of banking, sending money to a relative could be a big issue. The policy is expected to have a significant affect on mpesa, which serves approximately 14 million clientscontinue reading. It has since expanded to afghanistan, south africa, india and in 2014 to romania and in 2015 to albania. As the use of mobile phones for money transfer is relatively recent, there are. One fifth of kenyas mobile money transactions are now. Starting a money transfer company sample business plan. In the last year, we sent more than 2 million transfers to mpesa and equitel mobile money accounts quickly, cheaply and securely. A study finds the mobilemoney service mpesa has lifted 194,000, or 2 percent, of kenyan households out of poverty, having greater impact on femaleheaded households and helping 185,000 women shift from farming to business occupations. Mobile enabled persontoperson payments, or mobile money transfer services mmt, are experiencing rapid adoption in many markets, in response to steady growth in remittances, the worldwide ubiquity of cell phones, and the need for an electronic p2p payment alternative to paperbased mechanisms like cash and checks.
Informal sector gdp contribution, link to formal sector, contribution to. Kenyas equitel is now the second largest mobile money service in terms of transaction values. We conclude that mobile phonebased money transfer services in rural areas help to resolve a market failure that farmers face. Mpesa m for mobile, pesa is swahili for money is a mobile phonebased money transfer, financing and microfinancing service, launched in 2007 by vodafone for safaricom and vodacom, the largest mobile network operators in kenya and tanzania. Pdf regulations concerning digital payment systems, including mobile money, are being discussed in latin american countries at the moment. Aug 12, 2015 most people probably dont think of kenya as an innovation and technology hub, but in 2007 it became the launching pad for mpesa, a transformative mobile phonebased platform for money transfer.
Other sections discuss building and incentivising agent networks, and there will be an accompanying article on. Pdf factors influencing the adoption of mobile money transfer. The study was coauthored by tavneet suri of the mit sloan school of management. Then, when customers wish to cashin, they give the agent physical cash, and the agent in turn transfers a corresponding amount of efloat from their account to the customers account. Mobile in person mobile in person uganda kenya tanzania rwanda ethiopia ghana cameroon nigeria namibia south africa. Mobileenabled persontoperson payments, or mobile money transfer services mmt, are experiencing rapid adoption in many markets, in response to steady growth in remittances, the worldwide ubiquity of cell phones, and the need for an electronic p2p payment alternative to paperbased mechanisms like cash and checks. Publication of the legal notice crowned the long wait for a formal legal framework for mobile money in a country where there are over 26. In early 2007, the leading mobile operator in kenya, safaricom part of the vodafone group launched one of the most successful implementations of a mobile money transfer service, mpesa. Top 10 international money transfer apps for mobile 2020. Jan, 2012 why mobile money is popular in africa, but not in the us african countries like kenya have leapfrogged traditional banking systems by using mobile phones to store and spend money. Obopay drives 4 out of 5 top global mobile money platform markets.
Rapid development of information technology has made banking tasks more efficient and cheaper. While the telecom revolution is not unique to kenya, mobile money is. Mobile networks in kenya offer mmoney services in the name of mpesa by safaricom, orange money by orange, yucash by essar, and airtel money by airtel. Use your mastercard or visa to send money to kenya, uganda, tanzania, rwanda east africa to any mobile or bank account. Yes, the banks are still a great option if you need to send money inside the country, but if you need to send money from kenya abroad, then using a foreign exchange company is the way to go. Free online business payments to over 100 countries at unbeatable exchange rates. Mobile financial services such as mpesa in kenya are said to promote. Mobile money transfer money transfer through mobile. Open your mobile banking app and select transfers from the menu and select the type of transfer between my accounts or to someone else.