[2008-09-08]  Safaricom revolutionises money transfer services

Safaricom’s M-Pesa service September 4, 2008: Over a year ago, this publication asked (tongue in cheek) if the country’s largest mobile services company was in fact turning into a financial institution.This year, signs of a quiet revolution have seen Safaricom creep into the number one slot in terms of the number of customers it commands on what is now the country’s biggest banking service, M-Pesa.Every day, 10,000 new customers sign up for M-Pesa, Safaricom’s mobile money transfer service. That figure, nearly double that of Equity Bank, the closest and fastest growing financial institution can boast, means the mobile company is closing in on recruiting record numbers to its mobile money transfer service and has beaten the banking industry’s most ambitious targets.In just 18 months, Safaricom has managed to match what Kenya’s banking industry took over 100 years to achieve; by recruiting 3.8 million customers to its service.With its tremendous cash reserves, an aggressive marketing engine and extensive distribution network, M-Pesa has not only brought the convenience of modern financial services down to the masses — it now threatens to completely change the rules for the global banking industry.



Source: DAILY NEWS