Mobile Money Transfer Is A Lucrative Venture As The Country Records 129,357 Active Agents
Every village in the country has an M-pesa agent. Kenya’s leading mobile money transfer system, M-pesa was introduced in 2007 and many people have embraced the service. My neighbors have M-pesa shops, each shop makes roughly 30k profit each month. That is good money given that one needs 100k to open an M-pesa shop. Airtel money and Orange are also doing well.
In 2014, the value of funds transacted through mobile phones in Kenya stood at Sh2.4 trillion and in February this year, the Central Bank of Kenya provided that, transactions carried out through mobile phones rose by 24.7 per cent to Sh2.37 trillion in 2014 compared to Sh1.9 trillion that was transacted through the same channel in 2013. Well, most people prefer the service because it’s cost-effective, convenient and the most secured as opposed to using cash.
Communications Authority of Kenya indicates that, transactions carried out through mobile phones rose by 24.7 per cent to Sh2.37 trillion in 2014 compared to Sh1.9 trillion that was transacted through the same channel in 2013. The number of active mobile money transfer agents increased to 129,357 active agents during the quarter up from 126,622 in the previous quarter. Compared to the same quarter of the previous year, there were 110,882 active agents this represents a 16.7 per cent growth.
Currently, Safaricom holds the largest share in the mobile money market. Other service providers include;Airtel, Orange, Finserve, Mobikash, Tangaza and Yu. About 87,000 Kenyans work as M-pesa agents around the country which is a plus in job creation. Safaricom depends largely on mobile money and mobile data. The company’s revenue grew. M-pesa is still driving the country’s economy despite the fact that most people criticize the service. Safaricom depends on Mobile money since it contributes 20% of total revenue. Safaricom expanded M-Pesa agent outlets to 85,756 thereby promoting accessibility of the service to customers.
Airtel Money is the second leading service provider in Mobile Money transfer with more 10,000 agents and 3million subscribers. The service provider is working towards improving their services. Airtel Money and KCB Group recently signed a deal that will allow Airtel customers walk into KCB brunches and deposit or withdraw money from Airtel Money. In addition to that, Airtel agents will be able to obtain float from KCB outlets in a move aimed at improving accessibility to finances in the country.
The other service providers statistics report include: Orange has 9,231 agents and 185,463 subscriptions, Mobikash 7,765 agents and 1,263,665 subscriptions, Tangaza 1,596 agents and 503,556 subscriptions, Yu comes last with 1,070 agents and 2,147,139 subscriptions.