Why it works;
- They focused entirely on offering a single service, and doing it well; transferring money between 2 people using a mobile phone.
- M-PESA is simple and easy to use and to set up. All a person needs is a Safaricom SIM and National ID/Passport.
- No bank account is needed, which immediately allows a large percentage of Kenyans to avoid the difficulty and complexity of using a bank.
- Overcoming this hurdle has led to increased user acceptance; over 4 million subscribers.
- M-PESA makes its money by charging commissions on money transfers rather than on investing money. Alternative business model.
- Vodafone is looking to replicate that success in other markets. Scalable.
- Research done by Olga Morawczynski shows that migrant workers are the early adopters who influence other people to use the service.
- The value? Time and money is saved by people having to travel long distances to the nearest bank.
- 3,500 frontline agents countrywide means even rural communities are benefiting economically.
M-PESA delivers a simple valuable service using available resources that is understood and accepted.
I know M-PESA has been around for a while, but successful case studies are proven over time.