An Executive Primer on MPESA
In the mid-2000s, the CEO of Safaricom, located in Kenya, wanted to create innovative products.
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Updated November 2026. This was first published on 31 May 2020. The idea is the same. Any number below is what the original piece said then. It is not a new count.
Key takeaways
- In the mid-2000s, the CEO of Safaricom, located in Kenya, wanted to create innovative products.
- They became aware of the opportunity to get a grant from the UK, looking to help those unbanked.
- They then set out to develop straightforward financial services that people could easily use from their phones.
Kenya as an Emerging Leader in MPESA #
In the mid-2000s, the CEO of Safaricom, located in Kenya, wanted to create innovative products. They became aware of the opportunity to get a grant from the UK, looking to help those unbanked. They then set out to develop straightforward financial services that people could easily use from their phones. The intensified uprising for the development of MPESA in Kenya formalized in December 2007 for paying goods and services through mobile like Apple Pay and PayPal.
Financial Inclusion in Kenya #
Issac Mbiti and David N.Weil concluded the connotations of MPESA in Kenyain 2011 as the banking paths and services used by consumers for money transfer in Kenya through an adaptable channel resulting in prosperous characteristics.
The tendency of people that use financial inclusions for informal savings are reduced by MPESA — Digitalization and the emergence of mobile banking enforced people to be banked — The stimulating consumer market of MPESA forced their competitors Money Gram and Western Union to reduce their service fee by 60%.
As a result, the people of Kenya believe that MPESA fosters financial inclusions.
Growth Online To MPESA #
Initially, Vodafone functioned on the ideology of microfinance credits using cell phones and tried model assistance in Thika. During digital product placement, it was found that people awarded with the loans were sending the cash to others many miles away. Looking back, this had coincidentally recognized one of Kenya’s most significant monetary challenges.
Within a year, it continued to generate positive momentum resulting in a strong performance. Service revenue grew at a steady rate of 7%, with 5% growth coming from increased customer support and overall customer growth momentum remaining solid, pushing the subscriber base to 31.8 million. M-PESA now accounts for 31.2% of service revenue, indicating the resilience in the business model. Voice and messaging now contribute 39.9% and 7.3% to service revenue, respectively. As you can see from this data, MPESA grew and experienced rapid success within its first year.
M-PESA GLOBAL #
What is M-PESA Global? #
M-PESA global is a service that enables M-PESA registered customers to send and receive money globally.
M-PESA customers will be able to send funds.
Globally:** To millions of Bank accounts and over 500,000 Western Union locations globally.
Paypal:** Access funds quickly and shop around the world with PayPal mobile money service with M-PESA.
M-PESA registered customers will receive the funds from abroad on their M-PESA account.
How can one access this service? #
By dialling *840# >Accept terms and conditions to Opt in > Select send money abroad — MySafaricom App > Select M-PESA> Select M-PESA Global>Accept terms and conditions to Opt in > Select Send.
What is the minimum/maximum amount one can send through M-PESA Global? #
The minimum amount to send is KSHS 101 and maximum of KSHS 70000.
How can M-PESA customers receive funds from abroad? #
Why visit a bank or pay to receive money sent to you from US, UK, Europe, and UAE when you can receive it at the comfort of your home?
Safari.com and a number of money transfer services have partnered to ensure that it will not cost you a cent to receive money from the above mentioned locations.
Next time, when sending school fees home, remember it doesn’t have to cost the recipient a thing when you send through M-PESA.
Can money be sent to all Western Union agents globally? #
This service is available in all countries except sanctioned countries e.g., North Korea and Syria.
Can money be sent to all banks globally? #
This is currently available in Germany, China, and the UAE.
What is a Country ISO? #
It is a 2 LETTER abbreviation for country names e.g., ZA for South Africa, TD for Chad, KE for Kenya, UG, TZ, etc. It may not always be the first two letters of the country name.
What is a secret word? #
If you want to send funds to South Africa, you are required to input a secret word. The recipient will then be required to have the secret word details at the collection point to receive the funds.
Economic and Social M-PESA Impact #
Let’s take a look at a study done in Kenya near Lake Victoria. This study looked at the lives of women involved in the fishing industry. Its goal was to uncover what MPESA was being used for and how it affected its users’ experiences. Finally, it was used to determine the benefits and effectiveness of MPESA for women.
Although MPESA is popular, several women do not use it. Of the 30 women in Kenya who do not use MPESA, 52% stated that their reason was that they did not have enough money to save. Other common causes include not having an identification card or phone, or being illiterate and thus unable to understand the process of opening an account. When asked whether or not they would like to use either MPESA or a bank account, 44.5% of them stated that that would like to use MPESA, 44.5% chose a bank, 7% did not want to use either, and 4% would like to use MPESA as well as a bank account. The majority of women who said they would prefer to use MPESA stated that they think it is the easiest and common. But, 59% of all of these women reported that their money would be safe in MPESA.
How do the underbanked offer a sustainable model if businesses are prepared to think of mobile delivery channels?
Despite the vast populace, large consumer market, and the enormous number of Mobile Money Operators (MMOs), acknowledgment of Mobile Money Services has been the most minimal in Africa. The acquaintance of versatile cash administrations with the market after expanding the authorizing and guideline process by Nigerian Central Bank was required to quicken money related consideration and increment the total number of exchanges in the nation. Be that as it may, this was not the situation, since the normal aftereffect of more noteworthy monetary consideration was not accomplished. A few reasons have been recommended as the reason for this. But, the record contends that the absence of practical plans of action for the formation of Mobile Money administrations has probably been the greatest hindrance. Existing Business Models for Mobile Money Services have demonstrated to be unreasonable and unrewarding.
Questions and answers #
What is M-PESA Global? #
M-PESA global is a service that enables M-PESA registered customers to send and receive money globally. M-PESA customers will be able to send funds.
How can one access this service? #
By dialling \ 840 Accept terms and conditions to Opt in Select send money abroad — MySafaricom App Select M-PESA Select M-PESA Global Accept terms and conditions to Opt in Select Send.
What is a Country ISO? #
It is a 2 LETTER abbreviation for country names e.g., ZA for South Africa, TD for Chad, KE for Kenya, UG, TZ, etc. It may not always be the first two letters of the country name.
What is a secret word? #
If you want to send funds to South Africa, you are required to input a secret word. The recipient will then be required to have the secret word details at the collection point to receive the funds.