M-Pesa

Through the company Safaricom, a  Kenyan telecommunications company, M-Pesa is a money transfer service which allows the sending and receiving of money, paying bills even if the holder does not have a traditional bank account.

M-Pesa has become a significant system in Kenya and the uptake by its citizens has been great. 

The use of M-Pesa reduced operational costs and by making funds movement faster, economic efficiency increased. The reduction of cash use has also made financial transactions simpler.  As there is less reliance on carrying cash, the MPesa system is also seen as a safer method of payment

By providing unbanked citizens with access to finacial services, research has shown M-Pesa lifted 2% of Kenyan households out of poverty

IFC (2019) The Impact of M-Pesa in Kenya: How Mobile Money Contributes to Economic Growth. Washington, D.C.: International Finance Corporation

MIT News, 2016. How mobile money has changed lives in Kenya. [online] Available at: https://news.mit.edu/2016/mobile-money-helps-reduce-poverty-1208 [12 November 2024].