Vodacom will improve M-Pesa systems to aid the mobile money transfer tool gain traction in SA.
Vodacom and Nedbank unveiled M-Pesa in SA in September 2010. At the time of the release, the company expected to sign up 10 million subscribers within three years, which CEO Pieter Uys conceded was ambitious, last November.
However, take-up of the service had been disappointing, as there were less than 100 000 customers registered at the end of March, it said in its latest annual report.
This morning, Uys said the company will soon sign up almost 500 000 users locally. He noted the system needs to be improved as the interface with the banking sector is complex.
Uys said the company will roll out better systems in the first or second quarter of next year, which should bolster growth. There are several mobile money solutions in SA, as each of the big four banks offer at least one type of mobile wallet.
Blue Label has been working on digitising the paperwork, which will cut down on the amount of time it takes for merchants to be registered, the company said recently. It expected the number of registered merchants to grow to around 40 000.
M-Pesa was first launched in Kenya, which has a less mature banking market with fewer regulations, Uys explained. In Tanzania, where Vodacom also offers the product, it now has 2.2 million active users that move $340 million each month, he added.
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