Mobile financial services in the developing world could be worth $5bn by 2012, say analysts. The number of people with access to a mobile phone, but no bank account, would rise to 1.7 billion in 2012. It is also expected that more than one in five will use their mobile to access banking services, creating a market worth up to $5bn (£3.05bn).
Safaricom, Kenya’s biggest mobile phone firm, launched one of Africa’s first mobile banking systems, M-PESA, in March 2007. M-PESA works through a network of more than 7,000 agents – mostly shopkeepers – who are set up to take deposits and issue cash, with users authorising payments on their mobile phone using a PIN code. The Agents act as cash in/cash out points, rather like a human ATM. Agents earn commissions for each transaction they execute. This service has been expanded to include Tanzania and Afghanistan with plans to launch in India, Egypt and South Africa. Kenya is the first country in the world to use this service, which is offered in partnership between Safaricom and Vodafone.
Safaricom is the leading telecommunications company operating in Kenya, with over 13 million subscribers. Safaricom provides a host of products and services for Telephony, GPRS, 3G, EDGE, Data and Fax. Safaricom was launched in 1997 and, in the then largest IPO in Sub-Saharan Africa, started trading on the Nairobi Stock Exchange on June 9th, 2008. Safaricom was valued at $4.5 billion at the end of its first trading day. Safaricom’s current ownership is as follows: Government of Kenya 35%; Vodafone 40%; Publicly traded 25%. Visit Safaricom’s website …
