The world’s top mobile money platform is so successful regulators worry it could disrupt the economy

 ›  ›  ›  ›  ›  ›  ›  › The world’s top mobile money platform is so successful regulators worry it could disrupt the economy

2016,Africa,Diaspora,Kenya,Kenya Diaspora News,News,U.S Diaspora

The world’s top mobile money platform is so successful regulators worry it could disrupt the economy

Share this

The world’s top mobile money platform is so successful regulators worry it could disrupt the economy

At the time of M-Pesa’s launch in 2007, few could have conceived the mobile money service would be as ubiquitous and deeply entrenched in the lives of millions of Kenyans as it is today. A sizable portion of Kenya’s economy is now deeply ingrained in the platform to levels that are starting to concern officials on the economic consequences in the event of system-wide collapse or compromise.

While acknowledging its important role, Treasury officials think mobile money should be regarded as a “plausible fiscal risk” to the country given the growing inter-linkages with different sectors of the economy. At least 25 million Kenyans use the Safaricom-owned service through which they transacted $28 billion in 2015. This was equivalent to about 44% of the country’s GDP of $63.4 billion at the end of the period. In the first three quarters of 2016, it transacted $25 billion. It is the leading mobile money platform globally in terms of regular users and transactions.

“The financial and other institutions linked to this system would be susceptible possibly amounting to the value transacted through the channel, were this risk to materialize,” the government noted in a recently released budget report (pdf, pg.83). READ MORE

Source:http://qz.com/

Notes on Mpesa

Mobile money has worked elsewhere in the world. M-Pesa was started in Kenya in 2007 by Safaricom, a 90- per cent Vodafone subsidiary, as a corporate social responsibility (CSR) activity. Due to Kenya’s high crime rate, it was near impossible to carry money physically. So M-Pesa started as a money transfer project and was hugely successful. Today, M-Pesa has 70 per cent penetration in Kenya and is no more a CSR activity.

The world’s top mobile money platform is so successful regulators worry it could disrupt the economy Reviewed by on December 29, 2016 .

Share thisFacebookTwitterPinterestEmailWhatsAppThe world’s top mobile money platform is so successful regulators worry it could disrupt the economy At the time of M-Pesa’s launch in 2007, few could have conceived the mobile money service would be as ubiquitous and deeply entrenched in the lives of millions of Kenyans as it is today. A sizable portion of Kenya’s

LEAVE A REPLY

This site uses Akismet to reduce spam. Learn how your comment data is processed.

SAMRACK MEDIA

SAMRACK PRESTIGE SERVICES (S.P.S)

Phone:Tel 781-888-8770

Email: samlibbi@gmail.com,
Email: Samlibbi@yahoo.com

Your Convenience is our Priority!

View Monthly Archives

Subscribe to our Mailing List

Page generated in 1.518 seconds. Stats plugin by www.blog.ca