Mobile Payments In Kenya

mobile payments in Kenya

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Are you interested in learning more about mobile payments in Kenya? Do you want to stay at the forefront of the latest trends and innovations? If so, this blog post is for you! We’ll take a look at why mobile payments in Kenya are popular, how people use them, and what the benefits are.

Introduction to Mobile Money Accounts

Mobile money accounts are becoming increasingly popular in Kenya, especially since they don’t require a bank account to use. M-PESA is a mobile phone-based money transfer and payments service, allowing users to store money in an account directly on their phone. This service has revolutionized the way people handle their finances in Kenya, and has created the world’s most successful mobile payments service. In this blog post, we will explore the mobile money market in Kenya and examine the four main mobile money providers in the country.Source : live.staticflickr.com

The Mobile Money Market in Kenya

The Mobile Money Market in Kenya has seen tremendous growth in recent years. According to the Kenya National Bureau of Statistics, the active mobile money agents increased from 264,390 to 292,301 from 2019 to 2020. This growth is a reflection of the country’s increasing reliance on mobile payments as a means of sending and receiving money, as well as paying for goods and services. The market size for mobile money in Kenya reached US$ 109.9 billion in 2022 and is expected to reach US$ 348.3 billion by 2028, exhibiting a compound annual growth rate of 20.1%.

mobile payments in kenya

The Four Mobile Money Providers in Kenya

The four mobile money providers operating in Kenya are M-PESA, Telkom Kenya Ltd., Airtel Networks Kenya Ltd., and Post Bank. M-PESA, established in 2007 by Vodafone and Safaricom, is the most popular and successful mobile money service in Africa. It allows users to make deposits and withdraw cash without the need for a bank account. In addition, full interoperability of mobile money payments across networks was enabled in 2020. This allows users to make payments regardless of which network they are using. Telkom Kenya Ltd and Airtel Networks Kenya Ltd customers can now pay for products and services through their respective networks. Post Bank also offers services such as money transfer and store of value, enabling users to send money home or keep it as a store of value.

Kenyans Make 1.9 Trillion Mobile Money Transactions

Kenyans have embraced mobile money for payment of goods and services, as well as for transferring funds between individuals, as a mitigation measure against the COVID-19 pandemic. Data from the Central Bank of Kenya shows that cash transacted by mobile money agents jumped 36 percent to Sh6.2 trillion in the nine months to December 2020. This increase in mobile money transactions has been driven by the Kenyan government’s measures to reduce the impact of the pandemic on the economy. Mobile money transactions reached a new high in the first quarter of 2021, with a value of Sh1.82 trillion. These transactions have been made across 537 million financial services, worth a total of 1.65 trillion shillings over the same period.

mobile payments in kenya

Full Interoperability of Mobile Money Payments Across Networks

On April 8, 2022, the Central Bank of Kenya (CBK) announced the launch of the first phase of mobile money merchant interoperability. This new feature allows customers to transfer money from one mobile network to another, regardless of their network provider. This creates the possibility of greater integration between Africa’s payment networks and will help Airtel coordinate interoperability with other providers. With over 1.9 trillion mobile money transactions being made in Kenya alone, this new feature will make it easier for customers to make payments across different networks and foster greater financial inclusion in the country.

mobile payments in kenya

M-PESA: Africa’s Most Successful Mobile Money Service

M-PESA is the most successful mobile money service in Africa. Launched in 2007 by Vodafone and Safaricom, M-PESA has revolutionized the way people transfer and make payments in Kenya. With over 18 million users, M-PESA is an easy and secure way to pay, transfer, receive, and store money. By making it easier for Kenyans at every economic level to use their mobile phones to reliably and quickly pay each other, M‑PESA had made it easier to access basic services such as water and energy. In 2011, five years after its launch in Kenya, M-PESA had achieved almost all its success in East Africa. By July 2022, 96% of Kenyan households were using mobile payments with M-PESA being the most popular choice.

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