18 Apr M-Pesa is used by over 70% of households in Kenya – now international merchants can sell to Kenyan consumers and get paid with M-Pesa online using African Payment Solutions

Safaricom, is a Nairobi-based mobile network operator that is 40% controlled by the UK’s Vodafone Group.  The stats on their M-Pesa vary – a source suggests 15 million users conducting more than 2 million daily transactions, at a level of 60 percent of the country’s GDP.

M-PESA definition – the M is for mobile phone and PESA is the Swahili word for money – is a platform for making small-value electronic payments.  M-Pesa is a low-cost transactional platform that enables low-income customers to meet a range of payment needs.

Other MVNOs with mobile wallets are playing catchup, but no-one tops Safaricom’s M-Pesa.  Equity Bank’s Finserve is on a mission to take market share from M-Pesa.  Equity Bank is Kenya’s biggest lender with 8m account but this will take some time.

M-PESA is accessible from the most basic mobile phones for small-value electronic payments and stored value.  M-PESA transactions amounted to about 70% of the volume of electronic transactions in the country.

Customers with an M-PESA account, can pay bills and purchase airtime credit for a small, flat, per-transaction fee. The affordability of the service has been key in opening the door to most of Kenya’s population.

New applications like African Payment Solutions online payment service is making it possible for customers to make a range of payments to businesses using their M-PESA accounts.  The most common is payment of electricity bills, but now international businesses are seeing the benefits of M-PESA.  Local private schools are getting tuition fees paid by parents and grandparents remotely using M-Pesa.

Some reasons for success of M-Pesa are that Safaricom enjoyed a market share of near eighty percent and had the benefit of a relatively flexible regulatory environment which allowed them to roll out simply and fast.

M-Pesa is used by over 70% of households in Kenya.  There are limits on how much can be transacted through M-Pesa in one transaction and daily.

The good news for international merchants selling digital services online to M-Pesa consumers is that the new M-Pesa platform can handle 900 transactions per second.

Contact us now to enable your website for accepting M-Pesa in Kenya