#6
M-PESA
It is official – M-PESA is of age: the age of majority. That’s right, the mobile payment platform that has transformed Kenya’s, and now Africa’s, financial landscape is legally an adult. With 18 years under its belt, M-PESA is no longer the young, scrappy fintech startup that launched in 2007. If anything, M-PESA’s coming of age has only fuelled its ambition. The brand is not just growing up – it is dominating the payment system.
When M-PESA first launched, who could have predicted that it would become a cornerstone of Kenya’s economy, moving nearly 59 percent of the country’s GDP? That’s over 20 billion transactions processed in 2023 alone, a mind-boggling number that dwarfs even international giants like PayPal. In fact, as Forbes pointed out, the global players like PayPal and Apple have not managed to replicate the kind of success M-PESA has achieved, especially in emerging markets like Africa. Why? Because M-PESA understands its customers. It is built on the simple, yet profound insight that financial inclusion is not just about moving money – it is about making people feel seen and valued.
Over the years, M-PESA has expanded beyond simply transferring funds into a fully fledged financial ecosystem. From savings and investments to lending, insurance, and even micro-credit services, M-PESA has been catering to the diverse needs of millions. Now stepping into its new life of ‘adulthood’, M-PESA is not slowing down. The mobile service has taken on global aspirations, targeting international remittances and leveraging AI and big data to create an even more personalised, accessible, and secure financial environment for its customers.
As M-PESA revolutionises mobile money in Kenya and beyond, the integration of AI into M-PESA and related services allows the parent company, Safaricom PLC, to strengthen security, improve customer experience and expand access to other financial services, including the competition, enabling even greater innovation.
M-PESA continues to build on its foundation of financial inclusion by enhancing key products and services, driving new innovations, and expanding its customer base. According to the 2024 Sustainable Business Report, noteworthy updates include revenue growth and active user base, with M-PESA recording a revenue of KES 139.9 billion, driven by sustained customer engagement and product innovations. The 30-day active customer base grew to 32.41 million at the end of 2024, an indication of increasing reliance on the platform for daily financial transactions.
The M-PESA Super App aims at enriching the digital lifestyles of the customers, currently hosting over 80 Mini Apps spanning across categories such as financial services, entertainment, shopping, and transportation, further integrating M-PESA into the everyday lives of its users.
Other key products and services offered by M-PESA that are transforming the financial inclusion space include Fuliza, the popular overdraft service; Pochi la Biashara, which allows small business owners to separate business funds from personal funds on their M-PESA lines; and M-PESA Global, which enables cross-border international payments. Notably, M-PESA Global has processed transactions worth KES 14.5 billion through the M-PESA Visa card, serving an active customer base of 144,000 users.
Moreover, M-PESA Go is a feature that enables parents to manage and monitor their children’s mobile wallet usage, enabling users aged 10-17 a safe and controlled way to navigate digital finance.
M-PESA’s journey has not been all smooth sailing. It has had to innovate, adjust, and sometimes even go against the grain to make sure it stays relevant and accessible. As Forbes noted, international giants have had a tough time competing with M-PESA because they could not understand the local challenges the way Safaricom’s management does. By embracing local insights and responding to real-world needs, M-PESA’s rise was not just about offering a mobile wallet, but about transforming the financial ecosystem in a way that worked for everyone.
What’s next for M-PESA at 18? While continuing its core mission of driving financial inclusion, the platform will expand into new areas of growth and innovation. Key priorities include enhancing international remittances, developing savings and investment products, and scaling micro-credit solutions to help customers secure their financial futures. The roadmap also features technological advancements like big data and AI for personalised experiences, microservices technology, and strengthened cybersecurity measures to ensure customer privacy and safety.
On the infrastructure side, M-PESA plans to integrate 900 additional 5G sites and expand indoor coverage across 122 locations, ensuring broader connectivity. The platform will also deepen collaboration with the government on digital identification initiatives to improve compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. With these strategic focus areas, M-PESA is poised to maintain its leadership in connecting people and businesses to transformative financial solutions.
With nearly 70 million customers across Africa, and a presence in over 170 countries, M-PESA is no longer just a mobile payment platform. It is a financial powerhouse-one that’s changing the game for customers, businesses, and the entire economic landscape.
