Your Phone Your Bank: Kenya Banking Scene is on a Rapid Shift

By

M-PESA is the most successful mobile money transaction in the developing world. The service by Kenya's leading telecommunication company took the Kenyan financial market by storm after its launch in 2006. At first, critics were not short of negative predictions about how it would not end well. But less than fifteen years later, this mobile-based service is about to commence operations in other African countries.

When M-PESA found its way into the market, even banks could not hide their unease after realizing how this new kid made it effortless for businesses in Kenya to send and receive money. However, that never delayed the idea that was already ripe for the East African nation. In fact, it is interesting that banks today have a section in their operating rooms where they offer M-PESA. When you cannot beat them…?

M-PESA has seen a steady growth that no one could imagine at the time of its initiation. Besides spreading into other African countries, Safaricom has even bigger plans to become an international financial figure. M-PESA is at the center of the whole idea. 

The telco company's CEO reveals that the new strategy is to capture more sectors other than finance and communication. Currently, the company already has interests in education, agriculture, health, e-commerce, and education.

As a step to stand in solidarity with the hard times resulting from the pandemic, Safaricom waived the transaction fees on transfer of any amount up to Ksh 1,000. It was a major step to discourage the handling of physical currency. Due to that, September alone saw mobile transactions of over Ksh 480 billion.

As Safaricom remains true to one of its purpose in providing payment solutions, it launched Lipa Na M-PESA.  It is a service that allows businesses in Kenya to carry out transactions through M-PESA. Fortunately, it has become an icon in Kenya's cashless economy.

Today, Kenyans can access several loan services such as KCB M-PESA and M-Shwari through their handheld devices. Besides, there is the recent Fuliza, which more or less like an overdraft on an M-PESA account. Another service product by Safaricom is the M-Akiba that enables Kenyans to purchase government bonds. It is a partnership between the company, NSE, and the National Treasury.

The company had pulled together with Britam to offer low-cost health insurance; however, it didn't bear fruits. However, Safaricom did not relent on that and has since come up with Home Insurance Plan. M-PESA users can insure items in their home at a minimum monthly cost of Ksh 250. The goods could be electronics, furniture, clothing, and other household items with a total worth of not more than Ksh 250 000. 

It is now clear that transactions are significantly shifting from conventional to handheld devices. The banks realize the fact and are on the move to embrace the same. The major forces driving the change is the security and convenience that comes with cashless payments. Besides, there is a significant rise in the number of online businesses in Kenya.

 

 

 

 

 

 

Fred Kabiru

Fred Kabiru is a content creator and SEO specialist. He is passionate and experienced about Business, Digital Marketing, News and Technology. He is a believer of content worth reading for a brand worth following.

 

 

Comments

  1. Boaz BettNovember 21, 2020 at 2:25 PM

    Every idea has to be oppose before being embrace as it build its foundation.
    We are glad to be a part of M-pesa evolution as partners.

    ReplyDelete

Post a Comment

Popular posts from this blog

Make Money Online Today (Step By Step Guide)

By
Image
Gone are the days when you had to open a storefront to start earning. The internet has changed the game. Today, you can do business in a remote location: no shop, no stocks. Interesting? Well, you don’t have to own the products. All you need is to have that client and come up with how the commodities reach them. Additionally, the internet has opened up a lot of income-earning opportunities. From your couch, it is possible to see your money grow. Such is the case when you join First and Fast Communication System Company (FNFCOM). How does it work? Well, fnfcom is an online airtime distribution system enabling you to have sufficient top-up. Besides, the company seeks to help you out of those mobile debts, the likes of Fuliza, Mshwari, etc. It is time to get out of the cycle of debts. So, how do you go about it? Sign Up at fnfcom The first step is to create an account at fnfcom.   Go to your browser and load the website www.fnfcom.com . It takes you directly to the   home   page. A
Read more

4 SECRET TECHNIQUES TO MAKE YOUR BUSINESS MORE AUTHENTIC

By
Image
 The Untold Secret to Mastering Authenticity. There's something to be said about authenticity in business . It allows us to show up as ourselves, not the cardboard cutouts we think others want to do business with. The result? A much more enriching and personable work experience and an irresistible magnetism that attracts new business. Authentic people and things are the real deal. And when it comes to business, this matters more than you may think. Take a look at the following techniques to build and maintain authenticity in business. #1. Use storytelling Authentic people and things have stories behind them. These stories back up claims and highlights how they got to where they are today. An authentic meal? Passed down from generation to generation. An authentic artifact? Found through an excavation in some part of the world. An authentic business? Started in the basement of a factory, built up through years of struggle, determination and grit. You need to be a storyteller. And no
Read more

6 MOST SUCCESSFUL INCOME STREAMS EVERY WRITER SHOULD CONSIDER

By
Image
 How To Make Extra Cash. Writing is both a blessing and curse. The work is cerebral and tough. The pay isn't always that great. Most writers understand or assume they won't get rich typing. But we can make a great living. Most writers spend all their time earning money from a single source. Whether it's writing articles or books, blog posts or ads- the average writer has a single income stream from his/her work. Not only is this dangerous to your finances , but single-income sources can lead to burn-out and total dependence upon the host source. We can do better. One of the best things about being a writer is that, even when you're reading past your bedtime, your writing can still be hard at work ranking in some extra income. The trick is knowing how to play the publishing game.  Here are some ways to earn or make extra cash as a writer. #1. Books A book can be an evergreen source of income. Books also give authors credibility and help you grow a tribe of loyal readers
Read more

6 WAYS TO MAKE ONLINE MEETINS BETTER

By
Image
 Zoom Tips For Startups. Now that meeting online is a necessity, do you know the various ways to control and improve Zoom meetings and other online gatherings? Zoom has packed plenty of complexity into all the options that can be enabled or disabled to meet different business needs . You will need to decide how many of those choices should be left to the individual versus mandated Zoom's administrative controls. You've probably attended more than a few Zoom sales meetings over these past few Covid years. There are some people, however, who don't appreciate zoom and who don't understand the dos and don'ts of Zoom meetings. Check out these expert tips to avoid embarrassment and boost productivity. #1. Join your Zoom meetings early Do you log on at 9:59 am if a Zoom meeting starts at 10? That's too late. Think about, you would not arrive at a client meeting late, so why go to a Zoom meeting late? Instead of signing in a minute before the meeting is scheduled to st
Read more