Vodacom’s digital bank or mobile money service known as M-Pesa is flying as more customers signed-up, making it Africa’s biggest payment platform.
Mobile financial services—often called mobile money—are a high priority for many mobile operators, financial institutions, technology firms, and governments, according to McKinsey.
It added that in regions where financial inclusion is limited, such as sub-Saharan Africa, mobile money promises a lower-cost, more scalable alternative to traditional banking.
Vodacom is sitting in a pole position of mobile financial services after acquiring Kenya’s Safaricom. M-Pesa has made Safaricom to become Kenya’s largest company and Vodacom owns 35% of the mobile phone operator.
The mobile phone operator owned by British cellular phone giant Vodafone is now Africa’s largest mobile payment platform.
The firm today declared that its investment in a new M-Pesa platform has had an immediate impact resulting in a 70.9% increase in transactions for its international operations and an average of R24 billion processed through the enhanced system monthly. Vodacom international operations includes Mozambique, Tanzania, DRC, and Lesotho.
This translated into R288 billion transactions processed annually by Vodacom.
Furthermore, Vodacom through its new subsidiary is processing R82 billions of transactions a month via Safaricom.
This translates into R984 billion in transactions per month.
Combining transactions processed by International operations and Safaricom, Vodacom is processing R1.3 trillion on its payment platforms.
“We expect that the Safaricom transaction will further drive M-Pesa development and penetration outside of South Africa,” Vodacom informed investors.
According to GMSA, worldwide about $269 billion was moved through mobile money transactions in 2016 versus $1.2 billion in 2006.
Vodacom announced on Monday that its mobile money services has added 1.1 million new M-Pesa customers in the six months to end-September 2017.
The Vodafone owned firm, which recently acquired Safaricom, said this pushed its total M-Pesa customers to 14.8 million in the period.
The telco added that its revenues from M-Pesa rose 14%.