world uses credit cards, debit cards and all kinds of plastic money, we
use our mobile phones to send money, make a purchase as well as pay for
bills.Safaricom Kenya were the pioneers of mobile money with their
M-Pesa services. Since then, other mobile providers have followed suit
and they all provide money sending and receiving services.M-Pesa was
derived from two words. M stands for Mobile, while Pesa is the swahili
term for money. Directly translated then, M-pesa becomes
Mobile-Money.Image credit: Safaricom.
Way Back When
when I was in high school about 10 years ago, mobile transaction was
unheard of. As a matter of fact, few people own mobile phones. My mum
used to send me pocket money and bus fees through money orders. She
would go travel all the way to the nearest town (we lived in the
village), buy a money order in the bank, put it in an envelop and mail
it via post office to my school. Once I received the money order a week
or so later, I would take it to the school bursar, and she would again
travel to the nearest town (my school was also somewhere deep into the
village), cash in the money order and bring the money to do. The process
was long, time consuming and simply tiresome. Not to mention expensive..
then came M-pesa, a service by safaricom that lets their subscribers
receive, save, send or withdraw their money from a registered agent. It
works by employing middlemen known as agents. Agents apply to be
independent agents of the company. They have small shops known as M-Pesa
outlets where they register new customers, deposit money into
customer’s phones, or help them withdraw the money.Mobile money is
referred to as float and this what is exchanged between customers, and
between a customer and an M-Pesa Agent in exchange for money.If your
head is spinning as hard as mine trying to understand what I am talking
about, I’ll use real situations to explain how it all works.
Registering and Depositing Money
register as a customer, one has to visit an agent with the national ID
or a Passport. The agent your mobile line by taking your details. You
get to choose your pin though you also get an automatically generated
secret word sent to you through the mobile phone. This is the word you
use when contacting the customer care in case you have a problem.
Registration is normally free. The agent is supposed to have hard cash
as well as money in the mobile form. This is what we call the float. To
deposit money in your account, you give the agent money, and they send
equivalent float cash to your phone. This is also free.Once the money is
in your phone, you can leave it there for as long as you like, use it
to buy airtime for your phone, send it to a friend, transfer it to your
bank account if your bank allows, pay your water or electricity bill,
use it in stores to pay for items or send it to someone else.
Withdrawing Money from M-Pesa
you receive money, withdrawing works the same way as depositing.
Almost. You visit the agent with your ID or passport, you then send the
float to them in exchange for money. This is normally done at a small
fee. The agent will record your ID number and you get to sign to confirm
that you received the money. All these transactions are available on
the menu in your phone. You enter your secret pin every time you are
Paying For Bills
the past Kenyans used to waste so much time queuing to make payments
for their utility bills every end month. This is now a thing of the
past. Anyone can now pay their bills easily through Mpesa
from the comfort of their homes. No more rushing at the eleventh hour
to beat deadlines. Such transactions take at most 48 hours for the
account to reflect the payment, but is it still better than getting
penalized for failing to make the said payment in time.
Mpesa in Europe
Mpesa debuts in Romania
from mid August 2014, Mpesa has made its entrance into Europe through
Romania. The fact that an estimated 50% of the population do not own a
bank account makes it the perfect new home for mpesa. A large percentage
of the population in Romania still use cash to make payments for
transaction and this is the gap that Mpesa wants to fill. Romania joins
such countries as Kenya, Congo, India and Fiji.