Mobile money services have been on an upward trend; but is every player making a killing from it?
The answer is no, because, as you guessed, we have one leader dominating the market, and that is M-PESA.
As of June 2020, mobile money subscriptions stood at 30.5 million.
The quarter ending at that time has 223184 mobile money agents.
And as expected, M-PESA dominates the space with 98.9% market share.
The Communication Authority of Kenya reports that the values transacted during the last quarter of the year (March to June) increased significantly from the previous quarter.
This development has been linked to measures instigated by the Kenya government; the pandemic saw the govt compel telcos to dismiss sending fees for under KES 1000 transfers.
The values of transactions in Kenya Shillings made from Customers to Businesses (C2B), Business to Customer (B2C), Business to Business (B2B), Customer to Government (C2G), Person to Person (P2P), and total deposits per mobile money brand are showed below:
The total value of deposits during the quarter was at near KES 7.2 billion, KES 561 million and KES 61 million for M-PESA, Airtel Money and T-Kash, respectively. M-PESA obviously dominates the space, making us question if other telcos should play in the same space.