Impact Assessment of M-Pesa on the
Date
2011-04-19
Authors
Waithaka, Wanjiku
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Abstract
Context
The purpose of this research was to evaluate and assess the impact of
Safaricom Ltd’s M-Pesa mobile money transfer system on the informal sector in
Nairobi, Kenya.
The study aimed to assess whether there was any impact of Safaricom’s MPesa
mobile money transfer system on the informal sector in Kenya, specifically
in Nairobi, and to determine the effect on businesses in relation to the role of
banking in business.
The method of data collection
A questionnaire administered to respondents in the informal sector within
Nairobi, Kenya was used as a basis for the study. The sample consisted of 110
respondents and each respondent was requested to answer questions based
on current practice and opinions related to the use of the M-Pesa service.
The key findings
The study showed that with the use of M-Pesa becoming a part of the social
and economic patterns of the informal sector, efficiencies in business have
been improved with the costs of money handling reducing and a wide use and
acceptance of the service based on specific conditions such as value mobility
and atomic exchange.
The use of M-Pesa has also replaced some key banking services that were
previously only available in traditional banking channels. Therefore more people
who wouldn’t otherwise enter the banking system have, through M-Pesa.
The key message
The research has shown that while mobile money transfer is a fairly new
concept, the mobile telephony companies should continue to find new and
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innovative ways to turn the mobile phone into a tool for accessing savings and
possibly even dispensing loans and advances.
The banking industry also stands to benefit from an improved understanding of
the ‘banking’ requirements of the informal sector and in turn develop products
that appeal to the informal sector that are accessible via the mobile phone
which has emerged as an important tool to disintermediate the existing
ecosystem of banks
Description
MBA - WBS
Keywords
Mobile banking, Kenya, Mobile money transfer, Kenya, M-Pesa, Kenya