Background
Safaricom, Kenya’s leading mobile network operator, introduced M-Pesa in 2007. M-Pesa, which translates to “mobile money” in Swahili, is a mobile phone-based money transfer service that has fundamentally transformed the financial landscape in Kenya and has expanded its presence across Africa.
Challenge
Before M-Pesa, a vast portion of Kenya’s population had limited access to traditional banking. Transferring money across the country was challenging and often required physical transportation. There was a pressing need for a secure, fast, and accessible money transfer system.
Solution
Leveraging the high mobile phone penetration in Kenya, Safaricom launched M-Pesa as a simple solution for money transfer and micro-financing services. Users could deposit and withdraw money from a network of agents that included airtime resellers and retail outlets. Over time, the service expanded to offer bill payment, international transfers, and savings and loans services.
Marketing Strategy
- Local Understanding: Safaricom recognized the local needs and challenges, positioning M-Pesa as a solution to these day-to-day problems.
- Agent Network Expansion: They rapidly increased the number of M-Pesa agents, ensuring that even rural areas had access.
- Trust Building: By ensuring security and collaborating with local communities, they built a brand synonymous with trust.
- Diverse Services: M-Pesa evolved based on customer needs, eventually offering a variety of financial services, all through a mobile device.
Outcome
Today, M-Pesa is used by over 20 million Kenyans, about 70% of the adult population. It processes billions of dollars’ worth of transactions annually and has expanded its operations to countries like Tanzania, Mozambique, DRC, Lesotho, and even India.