Tag Archives: M-Pesa
M-Pesa: Latest News
Tom Jackson, 10:49 am AFKI Original
While both Kenya and Rwanda admit to the importance of tech development in spurring economic success, the countries have two different approaches. Kenya’s tech development has stalled, mostly on President Kenyatta’s watch, and the government needs to match its rhetoric with action if it is to get it going again. In contrast, Rwanda is earning a reputation as a test kitchen for startups, and a recent report placed the country first in government success in ICT promotion.
Tom Jackson, 6:13 am AFKI Original
While fintech solutions in other parts of the world have not produced consistent success, Africa’s lack of banking penetration has opened up possibilities for fintech startups to serve a mobile-first population. This track record of innovation is resulting in increased funding for African fintech startups, while of all the sub-sectors within Africa’s tech space it has also proven the most likely in terms of exits.
Tom Jackson, 6:55 pm AFKI Original
Africa as a continent must do better with regards to cybersecurity. With cybercrime on the increase globally, and recent major attacks such as WannaCry, more must be done to secure cyberspace in the continent that has been especially poor at doing so. According to the recent 2017 Global Cybersecurity Index, only two countries on the continent – Mauritius and Egypt – are in the leading stage of demonstrating high commitment to cybersecurity.
Tom Jackson, 2:19 pm AFKI Original
Just 2% of retail transactions in Africa are electronic. Cash is still king and small transactions — less than $2 — have hindered the growth of mobile money outside of its Kenyan heartland. The value of M-Pesa and similar services is questionable for Africans living on just a few dollars a day. The average M-Pesa transaction value is closer to US$30. It’s unsustainable for agents to serve lower-income segments. They can’t afford to get down to the level of very small transactions, limiting the effect of mobile money on the bottom of the pyramid.
Kevin Mwanza, 6:32 am
M-Pesa, the world’s largest mobile money network, could be the key to poverty eradication in the developing world based on its success in Kenya where almost 200,000 households headed by women are living above the poverty line as a result of the innovation, according to a study by Journal Science. The service, owned by telecom service provider Safaricom has economically improved the lives of many families in rural parts of East Africa’s biggest economy in the last six years.
Dana Sanchez, 2:06 pm
McDonald’s opened its first burger and fast-food restaurant in South Africa in 1995, and now has more than 200 stores. Chinese mobile messaging app WeChat is trying to compete with Facebook-owned WhatsApp, which dominates in SA, by collaborating with large merchants like McDonald’s. Customers can now pay at McDonald’s using mobile payments at some locations. WeChat is dominant in China, where 200M-plus use its mobile payment platform. Mobile payments have not caught on in SA like they have in China or Kenya.
Dana Sanchez, 5:39 pm
MTN’s announcement shows how difficult it is to crack mobile payments in South Africa’s financial services market. With one door closing, MTN is entering the micro insurance business with MMI Holdings in a joint venture called aYo. The mobile financial services industry is changing, and aYo will be able to compete thanks to the combined expertise, scale and market access of both companies. Insurance penetration is low in many African countries and MTN will be able to offer relevant, accessible and easy insurance solutions to consumers, the company said.
Tom Jackson, 4:58 am
Traditional banking in Africa has failed – 80% of the continent’s 1.2 billion people do not have a bank account or access to formal financial services. So mobiles and web-based services are stepping in to fill the gap. But there is much more to Africa’s financial services story than M-Pesa, the wildly successful mobile banking platform launched in Kenya and Tanzania in 2007. For example, Nigeria’s Social Lender looks at borrowers’ social media profiles to assess their creditworthiness.
Kevin Mwanza, 7:14 am
MTN Group, Africa’s largest telecoms operator, is turning to banking industry veterans to help it help revive it slowing profits by increasing the company’s revenue from it mobile money business. The group, which has had several changes in top management in recent weeks, has head hunted a new CEO and Group Head of Mergers, Acquisition and Strategy from the banking world.
Kevin Mwanza, 6:51 am
US based market platform, eBay Inc., has partnered with online shopping startup MallsforAfrica.com to give its sellers access to Africa’s biggest consumer market from July 2016. MallforAfrica.com was launched in 2010 by Nigerian Chris Folayan, with the aim of enabling African consumers to shop from western retailers. It claims to offer access to more than 8.5 billion items through 100 online stores including partnerships with Amazon, BestBuy, Macys and Bloomingdale.
- Real Estate