BUSINESS TECHNOLOGY MEDIA COMPANY
Companies
Sectors
Wireless

Vodacom’s M-Pesa hits R40bn monthly transactions

Read time 2min 30sec

Mobile operator Vodacom says M-Pesa transactions exceeded R41 billion ($2 8 billion) a month for the six months ended 30 September.

The mobile operator says the high number of transactions underpins M-Pesa’s promise of delivering financial inclusivity and positively contributing to economic growth in countries where it has become ubiquitous.

Vodacom Group CEO Shameel Joosub says: “Our strategic investment in Safaricom continues to perform in line with our expectations, having reported strong interim results at the beginning of November.

“They reported a 5.3% rise in service revenue growth, largely on the back of an 18.2% increase in revenue from M-Pesa and an overall increase in market share for the first time since 2017.”

He adds Safaricom continues to invest significantly in its network and infrastructure while accelerating its pricing transformation strategy.

M-Pesa has been growing faster than expected, with the six months earnings data showing the telco posted big gains from the mobile money platform.

Vodacom recorded sharp growth in its M-Pesa mobile money service, contributing R905 million in the three months ending June.

Joosub explains that initiatives to further expand the M-Pesa ecosystem contributed to the 797 000 increase in customers, up to 14.3 million.

M-Pesa has received global accolades in recent weeks.

Last month, the mobile money service received global recognition and was named in the top 10 of the most influential projects of the past 50 years by the Project Management Institute.

The mobile microfinancing platform was recognised for delivering cutting-edge mobile technology that allowed Kenya to leapfrog past more advanced economies and start a banking revolution.

The mobile money service is a hit in East Africa, and South Africa’s Vodacom holds a 35% stake in Safaricom, which runs the mobile money platform.

SA’s leading mobile carrier today published its interim results for the six months, showing subscriber growth for the period.

Joosub says ongoing initiatives to enhance customer experience through pricing transformation, modernisation of IT systems and sustained investment in network infrastructure, continue to pay dividends.

“This is evidenced by the additional 691 000 customers who joined Vodacom in the period. There are now 43.9 million customers connected through South Africa’s leading network, each enjoying access to a wide array of financial and digital services,” he explains.

Furthermore, Joosub says measures to introduce “one more service” to customers, “as part of our strategy to build diverse revenue streams, are quickly gathering momentum. Revenue from our financial services business jumped by 37.1% to almost one billion rand, as Airtime Advance, insurance and our recently launched VodaPay service all gained in popularity.

“More than one million people have made video-on-demand purchases, while our music, sports, games and other video services – all in their infancy phase – are contributing to solid growth in our digital services business.”

See also