Safaricom, a leading mobile phone operator in Eastern Africa, has revealed a significant milestone with 3.1 million M-PESA customers in Ethiopia since its launch in the country. M-PESA, originally introduced in Kenya by Safaricom in 2007, serves as a mobile banking service enabling users to store and transfer money through their mobile phones.
The services offered by M-PESA include deposits, withdrawals, peer-to-peer transfers, airtime and data purchases, M-PESA to Bank and Bank to M-PESA transactions, merchant payments, and international money remittances.
M-PESA was introduced in Ethiopia in August 2023, following the granting of a payment instrument issuer license to Safaricom M-PESA Mobile Financial Services PLC by the National Bank of Ethiopia. The license was issued upon meeting specified conditions, including the incorporation of the subsidiary and payment of the required fees.
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Safaricom MPESA Million Users
Safaricom, providing an update on its operations in Ethiopia for Q3 2023, reported 3.1 million M-PESA customers in a country with a population of 119 million. With low financial inclusion levels in Ethiopia, Safaricom sees untapped opportunities for further growth.
The report also highlights that Ethiopia currently has 26.4 thousand M-PESA agents and 43.1 thousand merchants, with expectations of growth as Safaricom’s network expands and M-PESA continues to penetrate the market. The potential for financial inclusion is substantial, given that 63 million people in Ethiopia are over 18 years old, presenting an opportunity for M-PESA to replicate the success it has achieved in Kenya over the past two decades.
Safaricom CEO Peter Ndegwa shared the company’s progress, noting the launch of 2,242 base stations covering 33 cities and towns, representing 33% population coverage. The focus is on densifying connectivity to enhance network quality further. The CEO also emphasized the growth of mobile data usage, surpassing levels seen in Kenya, and highlighted interoperability with nine banks for M-PESA to Bank transactions, aiming to drive increased transactions between banks and M-PESA.
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Conclusion
In a recent development, Safaricom announced the blocking of all unregistered users of its M-Pesa mobile transfer service. This directive is expected to impact over 49,000 unregistered users who were previously able to send or receive money.
The move aims to enhance security and compliance within the M-Pesa platform, affecting unregistered users of competing mobile money services like Airtel Money and T-Kash from Telkom.
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