M-PESA - Changing Lives

Michael JosephStrategic Advisor, Vodafone Money Transfer22nd March 2011

Population approximately 39

Million

78% of the population is rural

22.6 % adults have a formal Bank

Account

Literacy at 85 %

80% have access to a mobile

phone

GDP per Capita: USD 1,600

(CIA Fact Book 2009)

*FinAccess 200

Kenya at a Glance

M-PESA: Humble Beginnings!

Capitalizing on Mobile Technology to deepen access to Financial Services

Pilot

2005 2006

Initially for MFILoan Repayment

National Launch

2007

Branded as a money

transfer service

Expansion of

Functionality

2008-2010

More Customer Driven

Innovations

2011

Pre Pay Visa Card, Expansion of IMT

M-KESHO, Buy Goods, M-Ticketing, School

Fees, Expanded Tariffs

Over 13.5 customers as at 31st January 2011

M-PESA Customers

Growing M-PESA to meet Customer Needs

ATM Withdrawals - 24/7 access

to cash at over 700 ATM’scountrywide

Airtime Purchase - Top Up anywhere any time

More Choice for our Customers

Pay Bill Services (Customer to Business)

Over 600 Pay Bill Partners Facilitating payment of regular &

utility bills M-PESA to Bank Deposits &

Withdrawals.

More Choice for our Customers

Buy Goods Service - Payment of goods & services at merchant outlets

International Money Transfer Roll out to 48 countries in partnership with

Western Union Money sent directly to recipient’s M-PESA

account.

More Choice for our Customers

M-KESHO: Another World First!

First mobile enabled banking service (demystifying banking to the unbanked)

Empowering the unbanked in partnership with Equity Bank

Features

Savings account (deposits as low as USD 1.40)

Interest on savings

Emergency Credit –Interest Free

Personal Accident cover (upgradeable to personal insurance cover after one year)

No cost to Deposit

No Ledger Fees

Zero minimum balance

More Choice for our Customers

M-PESA Ticketing – Customers can purchasetickets online through M-PESA Agent outlets

Pay School fees – Payment of school fees to partner schools and education institutions

More Choice for our Customers

M-PESA Pre Pay Visa Card Prepay Visa card topped up by

M-PESA.

Facilitates electronic Commerce locally and internationally.

Cash withdrawal at VISA enabled ATMs worldwide.

Maximum balance of KShs.500,000

More Choice for our Customers

Bulk Payments (Business to Customer)

Salary Disbursements Loan Disbursements Promotion cash prize payments Dividends Payments

Over 300 B2C Partners

Winning Partnership’s: M-PESA for Organizations!

Building a Great Distribution Network!

Over 24,000 Agents countrywide

Quality agents, adequately serving an ever growing subscriber base

Agents from diverse sectors e.g. Supermarkets, Banks, Fuel Stations, Pharmacies.

M-PESA Agents

Role of M-PESA Agents

Cash In / Cash Out Services

Register M-PESA Customers

Customer Education

Compliance with Safaricom AML

& KYC Policy

Compliance with Safaricom

Business practices

Branding of Outlets to enhance

visibility

Working with Agents

Enhanced relationships with agents to foster loyalty. E.g. Principal Forums, Quarterly Agent Awards, Shop Assistant training, Agent Delight Studies

Aggregator Model to improve agent penetration.

Creating additional revenue streams for Agents. E.g. Digital Villages, M-KESHO, M-Ticketing

Operational Support for Agents – Strong back office support

Float and Cash Management

Introduction of super-agency to improve liquidity among agents.

Easy access to loans through partnership with banks. E.g. M-kopo na KCB

Theft Insurance product

M-PESA Continuously Changing Lives!

o Resettlement of Post Election Violence IDPs

o National Famine Relief Fund

o Gender Violence Recovery Programmes

o Mater Heart Run – Open heart surgery for children from under privileged backgrounds

Facilitating Social Collections & Disbursements!

Lay Away Program (by Kick Start International)

Scheme allows farmers to save towards purchase of irrigation pumps

Savings submitted via M-PESA

Kilimo Salama Program (by UAP Insurance)

Insuring farmers against crop failure

Premium collection and settlements done via M-PESA

M-PESA making a Mark in Agriculture!

o Repayment of Higher Education Loans.

o Payment of School Fees

M-PESA and Education!

Safaricom has a dedicated department to support

M-PESA employing over 350 staff members.

Over 50,000 Kenyans are

directly employed by

M-PESA Agent outlets.

M-PESA Creating Jobs & Opportunities!

M-PESA driving creativity as staff members are

encouraged to continuously innovate products that

meet customer needs

Collection of Health Insurance

premiums -National Health

Insurance Fund (NHIF) and

other HMOs

Payment for In and Outpatient

services at Hospitals

Grundfos LifeLink Clean & safe drinking

water Reduction in water

borne diseases

Enhancing the Health of our People!

• M-PESA customers save approximately 3 hours per transaction Spare time saved is used for economic generating activities. e.g.

Farming

• M-PESA customers save USD 3 per transaction Savings are used mainly to buy food.

0%

5%

10%

15%

20%

25%

30%

35%

How Time Saved is Utilized

Enhanced Livelihood through Cost and Time Savings

4 time winner of GSMA Awards

• 2008 – Best Broadcast Commercial

• 2008 – Best use of Mobile for Social and Economic Development

• 2009 – Best Mobile Transfer Service

• 2010 – Best Mobile Transfer Service

• 2011 – Best Mobile Money Service for the Unbanked’

2007/2008: Kenya Banking Awards, Product Innovation

2008: World Business & Development Award, Contribution towards

millennium goals

2008: Stockholm Challenge, Economic Development Category

2008: Africom Awards, Best Business Solution for Rural Services

2009: UN-Habitat Business Award, Best Business Practices

2009: Mobile Content Award, Best Mobile Transfer Service

2010 :Mobile Content Award, Best Mobile Money Transfer Service

Globally Recognized

Touching the lives of Kenyans!

M-PESA Documentary