M‐PESA Transforming the lives of 

Kenyans

Michael Joseph,

CEO Safaricom Limited

05th May 2009

Addressable Mobile Market Banked Population

Only 19% of Kenyans have bank accounts but many more have access to a mobile phone & the gap is widening

Why Mobile Money Transfer

30%

70%

Mobile PenetrationPeople without Mobile Phones

81%

19%

BankedUnbanked

Some Banks offer mobile banking as

added value service to their customers

Source – Finaccess national survey 2006

• Launched March 2007• Targeted at the unbanked but

convenient for all• Operated in Kenya by

Safaricom, in partnership with Vodafone

M-PESA: A World First’……………

Our Success Story……………

• Over 9,000 agent outlets

• Quality agents, adequately serving an ever growing subscriber base.

• Varied agent network

M-PESA Coverage

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Jul-07

Sep-07

Nov-07

Jan-08

Mar-08

May-08

Jul-08

Sep-08

Nov-08

Jan-09

Mar-09

M-PESA Agents

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Jul-0

7

Oct

-07

Jan-

08

Apr

-08

Jul-0

8

Oct

-08

Jan-

09

Over 11,000 new registrations per day6.2 million customers 31-Mar

Customer growth

Person to Person Transfers135.3 B KShs. ($1.7B) moved in P2P since launch.

M-PESA is reaching the unbanked

P2P Txns Value Mvt Vs. Avg P2P Txn Value per Customer

0

500

1000

1500

2000

2500

3000

3500

Mar

-07

Apr-0

7M

ay-0

7Ju

n-07

Jul-0

7Au

g-07

Sep-

07Oct-

07No

v-07

Dec-0

7Ja

n-08

Feb-

08M

ar-0

8Ap

r-08

May

-08

Jun-

08Ju

l-08

Aug-

08Se

p-08

Oct-08

Nov-0

8De

c-08

Jan-

09Fe

b-09

Mar

-09

Avg

txn

valu

e pe

r cus

tom

er/K

Shs

0

2

4

6

8

10

12

14

16

18

20

P2P

Txn

Val

ue M

vt (B

/KShs

)

Avg P2P Txn (ksh)

P2P Value Mvt (KShs/B)

Person 2 Person Transfer

Airtime Top-Up

Cash In Cash Out

M-PESA: Mobile Money Transfer today…

Continuing to innovate through Partnerships……

ATM Integration• In Partnership with PesaPoint

• No card required

• 24/7 access to cash for customers convenience.

• Withdrawal values are 40% higher at ATMs than at agent outlets.

Facilitating Collections (PAY BILL)• Over 65 Partner organizations.

• Service easy to use.• Convenience – Customers can pay for their

bills anywhere, anytime.

• Payment of regular bills.

• Facilitating Utility payments e.g. electricity.

• Collection of funds for CSR activities.

• Deposits to Bank Account possible

• Providing on line payment solution in a developing country where ‘plastic’ money penetration is low

Some M-PESA Pay Bill PartnersElectricity payments

Medical Industry

Insurance Companies Financial Services

Services

PAY TV

CSR Collections

Facilitating disbursements (Bulk Payments)

• Used by organizations to make payments to persons who are widely dispersed

• 22 Partner organizations

• Service/Salary payments

• Promotion/Social payments

• Suitable for Bank to M-PESA payments

X-DP200 confirmedKs3250 sent to GTVKENYA for accountABC123456789 on29/6/08 at 2.26 PMNew balance Ks1750

X-DP200 confirmedKs 3250 received from Northern Payments on29/6/08 at 2.26 PMNew balance Ks 4750

Some M-PESA Bulk Payment Partners

M-PESA: MMT FORERUNNER • 2007 / 2008 – Kenya Banking Awards – Special Award for Product Innovation

•2008 - Global Mobile Awards – Winner, Best Broadcast Commercial (M-PESA ‘Send Money Home’ TVC)

•2008 - Global Mobile Awards – Nominated, Best use of Mobile for Social and Economic Development

•2008 - World Business and Development Award – 1 of 10 private companies recognized globally for their contribution to the achievement of millennium goals through core business

•2008 - Stockholm Challenge – Winner, Economic Development category

•2008 - Africom Awards•Winner, Best Solution for Rural Services•Winner, Changing Lives Category (pilot with Concern Worldwide)

•2009 - Global Mobile Awards – Winner with Vodafone, Best Mobile Money Transfer service

Touching the lives of Kenyans

NB: Over 12,000 Kenyans employed by M-PESA

Video: The Customer’s Voice

Thank You

m-pesa@safaricom.co.ke