Vodafone M Pesa

Vodafone M Pesa- Transforms mobile into bank account
M-Pesa is the world’s most successful money transfer service. It enables millions of people who have access to a mobile phone, but do not have or have only limited access to a bank account, to send and receive money, top-up airtime and make bill payments.
GAP NEEDED TO BE FILLED:
The initial concept of M-Pesa had been to create a service which would allow microfinance borrowers to conveniently receive and repay loans using the network of Safaricom airtime resellers. This would enable microfinance institutions (MFIs) to offer more competitive loan rates to their users, as costs are lower than when dealing in cash. The users of the service would gain through being able to track their finances

This would enable microfinance institutions (MFIs) to offer more competitive loan rates to their users, as costs are lower than when dealing in cash. The users of the service would gain through being able to track their finances more easily. When the service was piloted, customers adopted the service for a variety of alternative uses and complications arose with Faulu, the partnering MFI. In discussion with other parties, M-Pesa was re-focused and launched with a different value proposition: sending remittances home across the country and making payments.
CHALLENGES :
The m-pesa agents have limited access to the customers’ personal details regarding their m-pesa account and thus can only help to a certain level, otherwise refer the customer to the
Safaricom m-pesa customer care service where they can access help of whatever level. M-Pesa is also criticized for stopping the government from getting revenue. These are a few of the challenges these are high cost of licenses, other challenges facing m pesa include the loss of cash money either through theft from employees, gangsters or organized people who call employees, employed in m pesa shop where they end up offloading cash. Also customers lose money when they send to wrong numbers.

It needs to link to a fuller range of banks, so that customers can avail themselves of the broader product set offered by regulated financial institutions. It can enable a broader range of institutional payments, such as government social welfare payment distributions and tax collections. In Kenya, M-Pesa has been so successful that traditional banks have come to see it as a serious competitor. At first, these banks sought to limit M-Pesa by seeking regulations from the Kenyan government, but increasingly they have begun to offer mobile banking services that attempt to disrupt M-Pesa’s monopoly of the mobile money