Browsing: M-pesa

Just days after starting offering one-day settlement for PayPal withdrawals, Equity has launched its One Till Number platform.

The Till Number platform offers retailers the freedom to accept payments from numerous payment channels or mobile wallets through the single till number in Kenya.

This newest offering by the bank is a first in the East African country’s marketplace which is well known for its early adoption of mobile money.

Read: Equity Bank, Kenyan investors raid DRC for multibillion-dollar opportunities

Due to the Till number’s ease of interoperability, it is now not necessary for businesses to sign up for numerous Paybill/Till numbers for them to accept payments from customers who pay using different numbers.

This latest product by the giant financial institution brings competition to Kenya’s established M-Pesa tills which have been adopted countrywide. Others that will feel the pinch include Airtel Money which is battling the giant telco in courts

  • Out of the 174 central banks surveyed by the IMF, 40 allowed the issuance of digital currencies.
  • For a currency to qualify as legal, it must be included in the country’s laws and classified in its monetary unit.
  • Legal tender status is granted to a currency in a country only if it is accepted by the larger population and can be received with ease. 

A lot of people are transitioning from the traditional way of holding money (notes and coins) to digital electronic money (digital currency, stable coins, and e-money).

This has been caused for a number of reasons:

  • Difficulties in gaining access to traditional financial services
  • Advances in African technology
  • The services provided can be paid for with digital currency.
  • Covid-19: Regular money was discouraged as it was viewed as an agent for transmitting the virus. As a preventive measure, e-money was widely encouraged.

Read: Africa is cryptocurrency-friendlier than

M-Pesa is on course to become a US$1Bn business.

Safaricom Plc (NSE: SCOM) released its interim results on 10th November announcing a 12.1% year-on-year (y/y) rise in 1H22 net earnings. Combing through its numbers against our estimates, its net earnings per share print (KES0.92) outperformed our expectation of KES0.85. The outperformance was primarily driven by lower than forecasted cost environment. Direct costs came in at KES44.5Bn (+20.3% y/y), beating our forecast of KES49.2Bn, while operating costs came in at KES23.4Bn (+10.3% y/y) outperforming our forecast of KES29.6Bn.  

M-Pesa revenues printed at KES52.3Bn (+45.8% y/y), against our forecast of KES55.9Bn. Behind the strong y/y growth, total transaction value grew 51.5% y/y to KES13.7Tn with volumes up 42.0% y/y to 7.3Bn. Two other factors were at play in the revenue performance: The lapse of zero-rated transactions (as expected) and a 31.3% y/y rise in 30-day active M-Pesa average revenue per user

Corporate announcements were relatively muted in with market participation widely driven by speculation and portfolio recalibrations.

Foreign investors maintained a bearish stance in the period with outsized exits on key stocks across the telco and banking sectors. In this article, we discuss activities that have been salient in the bourse during the period under review and give our outlook on the forthcoming events. 

East African Breweries Plc is seeking to raise KSh11Bn shortly after they retired their KSh6Bn Medium Term Note (MTN) on the 28th of June. (The early redemption was averre...

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Despite the effects of Covid-19 Africa remains the ripe land of opportunities and as the conversation about Investing in Africa is shifting from one of deficits and gaps to one about Opportunities, Prospects, Trends, Innovation and creativity, in the Companies and industries who have paid close attention to how business in Africa operates.

Africa continues to be the newest destination for emerging market investors and according to Eric Osiakwan, the managing partner at Chanzo Capital, half of the world’s fastest-growing economies have been in Africa, with Ghana and Ethiopia among the countries which showed a real GDP growth of 8 percent in 2018.

In an interview with this reporter at the Social House hotel in Lavington area of Nairobi, Eric Osiakwan a renowned tech investor and entrepreneur says that Investors seek out emerging markets for the prospect of high returns, as they often experience faster economic growth as measured …

With over billion mobile money accounts Africa continues to lead the way in transaction value and volume thanks to M-pesa a Kenyan based mobile money service, that is largely used in East Africa. Other regions all-round the Continent are also registering massive growth.

In 2019, West Africa reported the most live mobile money services in any region, with 56 million active accounts. In Ivory Coast, one of Francophone Africa’s largest mobile money markets, 75% of the population own a mobile money account, compared to 20% who own bank accounts. The difference is staggering and clearly shows the region’s huge appetite for the service.

While telecom operators have largely dominated mobile money services across most of sub-Saharan Africa, a few startups are trying to change the mobile money experience for customers. Ivory Coast-based fintech startup Julaya a digital account for African small and Medium businesses is one such company, that has …

Tanzania is one of the fastest-growing mobile money markets in Africa, but that scenario could change as higher charges on mobile money transactions get introduced.

The change in tariffs is sparking an uproar of customers nationwide. The new levies began on July 14 2021.

Global mobile operator body, GSMA—pointed to Tanzania as a transformative hotbed for mobile, as in 2007 around 5 million people, representing a 10th of the population, were subscribed to a mobile service. That number has grown fivefold today to more than 25 million.

READ: Are Mobile Operators the next Fintech Startups?

Now in that context, mobile money services have also grown. Tanzania Communications Regulatory Authority (TCRA) points out that, mobile money subscriptions (accounts) are more than 32 million, whereby the market share is dominated by Vodacom’s M-Pesa (42 per cent), Airtel Money (20 per cent) and Tigo Pesa (26 per cent).

Statista—a global business data platform, …

East Africa is a global leader of mobile money with the highest penetration of mobile money in the world according to a report by the African Union in collaboration with the Organisation for Economic Corporation and Development.

The joint report is titled; Africa’s Development Dynamics’ authored by the African Union (AU) in collaboration with the Organisation for Economic Corporation and Development.

Mobile money services are provided by telecommunication companies and supported by a network of licensed agents that allows registered users to deposit and withdraw cash in a virtual wallet.

According to data from the report, for every 1,000 adults, the East Africa region has 1,106 registered mobile money accounts compared to  600 for the whole of Africa, 533 and 245 for Asia, Latin America and the Caribbean respectively.

The penetration is higher in the region with most adults subscribers owning one or more mobile money accounts.

According to the …

Over the last three years, the financial health of the average Kenyan has worsened.

For businesses, especially smaller scale, the lack of financing is a consistent constraint to growth slowing down or entirely killing them off.

2019 was the half-way point for the implementation of Kenya’s long-term national development plan Vision 2030. However, much needs to be done to ensure that financial systems develop to benefit the most at need especially those who are financially limited or excluded.

Read: Digital banking key in boosting financial inclusion

According to former FSD Kenya Director, David Ferrand, East Africa’s investment hub has yet to create the financial system it needs to achieve its ambitions for national development over the next decade.

He notes that while gains in financial inclusion have been extraordinary, these have not translated into the developmental impacts originally posited.

“National savings have not reached the levels sought to sustain the …

By the time Safaricom launched M-Pesa payments in 2007, the market for digital payment in Africa was barely scratched. With poor internet connections, defragmented payments systems, and a non-existent online-based customer base, the continent was in darkness.

In 2006—prior to the launch of M-PESA, the leading local mobile money transfer service—only 18.5 percent of Kenyans used formal services (i.e., mostly bank accounts), 8.1 percent used semi-formal services (such as those provided by microfinance institutions), 35.0 percent used the informal sector (rotating savings and credit associations), and no less than 38.3 percent were completely excluded.

A decade later, the industry has expanded rapidly, giving birth to new entrants who have pushed the worth of this sector to billions of dollars and other billions exchanged through various platforms. These include the use of mobile money, credit cards, virtual cards, instant bank transfers, and QR codes.

The global digital payments market size is …