Vodacom’s M-Pesa Mobile Money Service A Hard Sell In South Africa

A classic case of one-size-does-not-fit-all. The mobile money service, M-Pesa traction in South Africa is a far cry from how it performs in where it began Kenya. So much so that Vodacom said it is winding up M-Pesa services in South Africa in June 2016.

Shameel Joosub, Vodacom’s Chief Executive, said, “Vodacom’s decision is based on the fact that the business sustainability of M-Pesa is predicated on achieving a critical mass of users. Based on our revised projections and high levels of financial inclusion in South Africa there is little prospects of the M-Pesa product achieving this in its current format in the mid-term.”

In few words, Vodacom is shutting down M-Pesa mobile money services next month. However, the mobile money services will remain operational in other economies like Mozambique where the conventional banking services are limited.

In other markets where financial inclusion is limited and where there is a more supportive macro environment, M-Pesa gain solid traction based on exponential growth in customer acquisition,”

continued Joosub.

Kenya and Tanzania are prime examples of this. It is important to note that this decision does not affect M-Pesa customers in Tanzania, Lesotho, Mozambique and the DRC, where the product continues to grow exponentially.”

In Mozambique, M-Pesa was launched in 2013 and by September 2015, Vodacom stated it has already signed up more than one million users with over 30 million meticais ($75,000) transferred per day.

The mobile money was first launched in Kenya in 2007 where it recorded probably its best run. It then extended to other African countries like Albania, DRC, Egypt, Ghana, India, Lesotho, Mozambique, Romania, South Africa, and Tanzania.

Felix Omondi

Kenyan citizen with a passion for writing for as long as I can remember. In my spare time, I like to blog and read up on trends that's happening around the world.

Recent Posts

What is the Future of Education?

Image: Pexels Source CCO License Education is changing and arguably for the better. This is…

21 hours ago

Why Is Intelligent Search So Valuable?

Introduction How much time do you spend (or waste) searching for the appropriate and relevant…

21 hours ago

6 Tips to Improve SaaS Customer Acquisition and Retention

Image by StartupStockPhotos from Pixabay No one can say for sure if customer acquisition is…

2 days ago

Top 6 Marketing Campaign Metrics for Any Business

Marketing campaign metrics, also known as KPIs, play an important role in the monitoring and…

2 days ago

5 Easy Ways to Uninstall Programs in Windows 10

The journey of a PC user includes a lot of times when we download and…

2 days ago

Where to Find Your New Favourite Online Hobbies

Image Credit: In today’s busy modern world, it can often feel like there just…

3 days ago