M PESA story

What are the things M PESA did right?
  • Clean and focused campaign – “Send Money Home” – focused only on national remittances – something that was done in abundance
  • Transaction fees were the lowest for any mode of money transfer
  • Fees clearly communicated with slabs/displays at agents
  • Differential pricing for customers paying to other customers vs non-customers. This brought in viral effects and drove further registrations
  • Security was the main plank as money transfer was not all that safe
  • Realized that trust resides in timely delivery of SMS receipt. Initial outages or delays created a lot of complaints. mPesa team upgraded the SMSC servers and the menu also
  • Low hurdles to join/sign-up. Any ID proof worked and there wasn’t much KYC done
  • Availability of agents was high. Uncomporable distribution reach.
  • Agents were handpicked, shortlisted after a comprehensive evaluation and then trained sufficiently
  • Agent level liquidity/cash management

Consumer pitches for payment solutions

Any new payment solution seeks to change the consumer behavior in a significant way and hence tries to ride on one or multiple triggers. These triggers are the reasons why a consumer would prefer our payment option over all the others at the moment-of-truth.

I do not want to carry cash/cards/bulky wallet

This feels really safe and secure

I get the best deals at merchants, when I use this option

I earn rewards for most/all of my spends

This is really fast/easy/convenient

The fee structure on this option is most exciting