Safaricom’s mobile money transfer service success story-The M-pesa.

For a bit forget the times of our forefather’s discovery times,the times of Newtons,Bell and their likes,who made their names by churning out creative inventions innovations which revolutionized and changed the world.Also,forget the renaissance times,medieval and the industrial revolution times in Europe ,and,what was been referred as the new world,the new front-the Americas.In those times a lot of resources were allocated heavily towards inventions and technological advancements.Those were the times when most of the inventions were invented.

Although,inventions happens to be a continuous process where creative innovations continues to be churned out ,the unveiling and infiltration of the mobile phone technology has opened a new creative front.Mobile phone technology seems to be the new avenue where modifications of mobile applications supporting a certain initiative continues to sprout out.Creation of mobile applications and software happens to be the in-thing as the mobile technology continues to spread across the country,where 8 out of 10 people do own phones.

But,none of these inventions has surpassed the greatest mobile application innovation of all times-the Safaricom mobile money transfer.It can be described as the greatest invention of the 21st century.It’s success story acts as the model and continues to be replicated in other countries.And,it’s end result has it,it has impacted positively on people’s lifes,and,has simplified how people do bank and transfer their money.The era of carrying hard currency have already gone after being substituted by M-pesa mobile money transfer solution.

Safaricom,a Kenya’s leading mobile phone firm with a big market share,invented and initiated the mobile money transfer which they branded ,M-pesa,{M for mobile,Pesa a swahili word for money}.It is the product name of a mobile phone based money transfer service for Safaricom ,which is a vodafone affiliate.

The M-pesa service was launched in March ,2007 and now boasts of over 14 million customers and about 28,000 agent outlets across the country.The service allows mobile phone subscribers to transfer money as little as kshs.50 in seconds,was a first in the world and is now being emulated by countries like South Africa,India and Afghanistan which have launched similar money transfer service.It is also interesting to note that other mobile phone companies have followed suit.

And,since it’s inception the service has being modified to the point that it is now possible to pay your bills,buy goods and airtime,pay a service rendered and make A.T.M withdrawals from your bank account ,all in the of your living room with a simple click processes on your mobile phone.The M-pesa solution has catapulted to most kenyans both in urban and rural areas and especially the later who had been marginalized and edged out by major banking institutions.

It’s also in the same vein that even the blog page you are reading right now,it’s webmaster was paid his service using the same M-pesa money transfer solution.And,it’s positive impact in the society has forced major banking institutions to retreat to the drawing board to map out strategies on how they can incorporate the application in their banking service systems.

The M-pesa was entirely developed by kenyans and was initially sponsored by the United Kingdom based,Department for International Development[D.F.I.D]2005-07.The system was developed and ran by Sagentia from initial development to the 6 million customer mark.It is a branchless banking service ,meaning that it is designed to enable users to complete basic banking transactions without the need to visit a bank branch.

It has quickly captured a significant market share for cash transfers,and,grew astoundingly quickly capturing 6.5 million subscribers by May 2009,with shs.2 million daily transactions.The continuing success of M-pesa in Kenya has been due to the creation of a highly popular ,affordable payment service with only limited involvement of a bank.M-pesa customers can deposit and withdraw money from a network of agents that include airtime resellers and retail outlets acting as banking agents.

According to International Monetary Fund,report in Kenya,it says that the value of M-pesa transactions since 2007 to March,toppled kshs.828 billions,or,half of the country’s Gross Domestic Product,and,last years’ worth of business reached shs.47billion.And,it’s is that vein that made the World Bank to pick former Safaricom,chief executive officer,Michael Joseph,to help replicate this model in developing countries ,as a way of fighting poverty and deepening financial services.

And,the success story of this mobile money transfer has won applauds,accolades as it continues to bag awards.In February,it won the best mobile money for the un-banked award at the world’s mobile congress in Barcelona .During the GSMA awards,Safaricom was feted for M-pesa’s success in helping financial inclusion.

This solution is enhanced with the addition of new features and territories.It is winning ground is seldom seen in the mobile industry.The M-pesa has grown rapidly and has over 13 million users and transacts kshs.2.45 billion daily.

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