I was recently informed about a rather interesting service that is being used in Kenya called M-PESA. According to their website, “M-PESA provides an affordable, fast, convenient and safe way to transfer money by SMS anywhere in Kenya. Through M-PESA you can:
Deposit money
Withdraw money
Transfer money (send) to another M-PESA customer
Transfer money (send) to someone who is not an M-PESA customer; in fact they need not even be a Safaricom customer
Buy Safaricom prepaid airtime
Manage your M-PESA account (i.e. show balance, call support, change PIN and change language).”
At first glance, I thought that the original intent M-PESA was for buying and transferring airtime while financial transactions were just a side affect; however, according to the FAQ M-PESA is intended to be “an innovative mobile payment solution that enables customers to complete simple financial transactions including person to person money transfer. It is aimed at mobile customers who do not have a bank account, either through choice, because they do not have access to a bank or because they do not have sufficient income to justify a bank account.” Continue reading →