M-Pesa launches mobile money service for SMBs
For some time, Kenyan M-Pesa has been the model for peer-to-peer mobile money transfer. The mobile money platform from wireless carrier Safaricom now boasts around 17 million subscribers.
Now M-Pesa is looking to become a tool for businesses as well, launching a new service called Lipa na M-Pesa that will allow businesses to pay salaries and accept payments using the M-Pesa platform.
As a part of launching Lipa na M-Pesa, the company is launching a recruitment effort with a goal of enrolling more than 100,000 small and medium-sized businesses by April 2014. The effort by Safaricom includes simplifying the registration process to onboard merchants more quickly, the company said.
"By using the M-Pesa payment services, traders will handle less cash and will therefore be less susceptible to risks associated with cash handling such as theft and fake currency," said Betty Mwangi-Thuo, Safaricom GM for Financial Services. "In addition, Lipa Na M-Pesa will also help traders enhance business efficiency."
Kenya's Central Bank reports financial inclusion levels, meaning the number of consumers with access to basic financial services, is around 80 percent, with more than half of that number coming from access to M-Pesa.
Read more about money transfer/P2P.