In November 2018, telco Safaricom launched M-PESA Global. The product was an expansion of the carrier’s financial services to other countries. It allows users to send and receive funds from different countries across the world through the use of a series of money remittance services such as World Remit and Western Union.
During its launch, M-PESA Global was equipped with add-ons such as PayPal integration that allow customers to deposit funds from M-PESA to the American payments system, as well as withdrawing from PayPal to M-PESA. In the first few weeks after its announcement, users could use the service to transact in Rwanda, Tanzania, Uganda, UAE, U.K., and Germany.
To expand the platform, Safaricom has invested KES 407 Million that will see it launch in new markets. The investment was reportedly made via Instaconnect Limited, a listed company in the Nairobi Security Exchange (NSE) that was acquired by Safaricom.
Safaricom’s H1 results for 2019 that were announced some time back revealed the significant contribution of M-PESA to the telco’s earnings, which is just behind voice. The operator has also spun a series of products based on the financial service, including Lipa Na M-PESA that has changed how people make payments in the country, effectively taking financial inclusion to the grassroots.
According to the carrier, M-PES Global processes KES 101 billion of diaspora remittance in the FY that ended in March 2019, making it one of the primary players in the business.
The investment is projected to grow Safaricom’s M-PESA earnings in the next reporting of its financials.