Technology and Innovation
M-PESA
M-PESA is Africa's most successful mobile money service and the region’s largest fintech platform.
M-PESA is the preferred way to make payments across Africa, both for the banked and unbanked, due to its safety and unmatched convenience.
It also provides financial services to millions of people who have mobile phones, but do not have bank accounts, or only have limited access to banking services—with a safe, secure and affordable way to send and receive money, top-up airtime, make bill payments, receive salaries, get short-term loans and much more.
51 million
customers are making over $314 billion in transactions per year through M-PESA
How it works
Step 1
Customers register for the service at authorised agents - often small mobile phone stores or other retailers such as barbers, butchers, bakers, etc. - and then deposit cash in exchange for electronic money. Customers can then send money to their family or friends throughout the country.
Step 2
Once registered, all customer transactions are completed securely by entering a PIN number and both parties receive an SMS confirming the amount that has been transferred.
Step 3
The recipient receives the electronic money in real-time and then redeems it for cash by visiting another agent. Alternatively, they can spend it at an M-PESA merchant.
How it started
M-PESA was launched in Kenya in 2007 to make domestic remittance as simple as sending a text. Today, M-PESA allows customers across seven African markets to instantly and securely send funds, pay bills, make in-store payments, send money abroad, and access financial services such as loans and overdraft facilities.
Vodacom and Safaricom Partner to Boost M-PESA Growth
In early 2020, Vodacom & Safaricom completed the acquisition of the M-PESA brand from Vodafone Group through a newly created joint venture. The joint venture will accelerate the growth of M-PESA through Africa by giving both Vodacom and Safaricom full control of the M-PESA brand, product development and support services as well as the opportunity to expand M-PESA into new African markets.
Key services
Core services
Send and receive money
Domestic transfers: M-PESA customers can send money in real time to any other M-PESA customer with an account registered in the same country. In most markets customers can now send money to mobile money users on other networks as well.
International transfers: Through our international remittance partners, M-PESA customers can receive and send money across borders in real time.
Cash in
Convert cash to e-money at any of our agent points
Cash out
Convert e-money to physical cash at any of our agent points, or at ATM machines
Retail payments
Buy goods and services in store or online with any registered M-PESA merchant
Bills & Tax payments
Pay utility bills, school fees, taxes and much more with M-PESA
Airtime & Data purchases
Buy airtime to make calls and browse the internet
Financial Services
Loans
M-PESA customers build a credit score that enables them to access loans via our bank partners. Products include M-Shwari and KCB M-PESA in Kenya and M-Pawa in Tanzania. We work hard to ensure customers not only have access to credit but are also educated so they understand the implications of a loan.
Savings
M-PESA customers have access to fantastic individual and group savings products including
Xitique in Mozambique, M-Koba in Tanzania, Mokhatlo in Lesotho and M-Shwari in Kenya. Halal M-PESA also enables our customers to save safely whilst complying to Sharia laws. Savings accounts contribute to strengthening our customers’ credit scores, giving them better access to financial services.
Overdraft
Customers can access an overdraft facility on M-Pesa to support them to make payments when they don’t quite have enough balance on their account. The better their credit score, the larger their overdraft can be.
Agents also have access to an overdraft to ensure they can offer the best service to our customers, even when they’re low on float.
Wealth Management
M-PESA customers can set their risk appetite and invest into wealth management funds to increase returns on their holdings. As always, we work hard to educate customers so that they understand the risks and rewards associated with such investments.
Insurance
M-PESA customers can contribute to insurance schemes to safeguard against unforeseen events or financial shocks. Through our partners, we offer insurance products that cover
health, agriculture, devices, transport, funerals and businesses.
Bank Transfers
Customers and Agents can transfer money between their M-PESA wallets and bank accounts in real time.
Business Services
Receive payments
In Store: M-PESA businesses can receive payments for goods and services through their M-PESA business accounts, either via unique 6-digit till numbers, a QR code, point of sale devices or digital invoices.
Online: By integrating with our APIs, local and global e-commerce businesses can make M-PESA a payment option on their websites. Customers enter their phone number on the merchant checkout page before receiving a prompt to their phone to enter their M-PESA PIN, confirming the transaction. Where logistics are involved, M-PESA offers an escrow service, whereby the funds are held until the buyer confirms receipt of the goods. Find out more here.
Make payments
M-PESA organisations can send money to individuals or in bulk in real time. Typically used for paying salaries, NGO/government disbursements and petty cash payments. M-PESA validates the recipients name and phone number to ensure payments go where they’re intended. M-PESA also makes it easy for organisations to manage and pay utility bills and taxes.
Manage organisation
Whether it’s on a smartphone or a desktop, M-PESA organisations have everything they need to manage their finances and inventory with M-PESA. Through our portal, organisations can track sales & expenditure, make payments, send invoices, order stock, access credit, manage subscriptions, set recurring payments, drive customer loyalty and much more.
Roll up
Businesses can roll up money from multiple tills into a centralised account. They can also send money from their M-PESA account to their bank accounts (and vice versa) in real time.
Digital Services
APIs
The M-PESA Open API hub allows developers to safely test and launch M-PESA services on 3rd party platforms. Find out more about our extensive range of APIs and how to integrate to M-PESA here.
In-app advertising
Businesses can grow traffic and engagement through prime advertising space on the M-PESA customer and business apps.
Mini apps
The M-PESA customer and business super apps create a whole ecosystem of 3rd party services. Whether it’s eCommerce, travel, events or business services, our mini app functionality exposes both an array of new services to M-PESA customers, and a huge customer base to our mini app partners.
M-PESA provides templates that enable mini apps to be created with minimal developer knowledge, whilst larger organisations can develop their own mini apps if they would prefer.
Our latest stories
No results found
Customer stories
International remittances
International remittances contribute to achieving 12 of the UN’s 17 Sustainable Development Goals. In particular it is proven a 10% increase in per capita remittances leads to a 3.5% reduction in poverty (United Nations, 2020).
Through strong relationships with leading money transfer operators such as Western Union, MoneyGram, World Remit, Remitly and MFS Africa, M-PESA is the destination for over US$1.5 billion remittances every year, including 60% of formal remittances into Kenya and 20% into Tanzania.
Support
Learn more about your local M-pesa services here.
