Since the launch of M-Pesa in 2007 by Africa’s telecommunications giant Safaricom, the mobile money transfer platform has seen tremendous growth over the years. The platform has not only eased the transfer of money between individuals and businesses, but now provides alternatives for its customers to save, borrow, and make payments for various transactions with a tap on their phone.
With the introduction of the Lipa Na M-Pesa feature, the platform made business easier especially for cashless transactions which have gained a lot of relevance with the measures to minimize the spread of the novel Coronavirus. The telecommunications firm keeps making major steps in the financial market arguably more than some financial organizations in the market commanding a big market share.
In the most recent development, Safaricom is at it again with an update on its Lipa na M-Pesa option. Small-scale and medium enterprises (SMEs) will now be able to pay suppliers and pay salaries directly from their business M-Pesa accounts eliminating the need for bank transactions.
Speaking at the launch of the new Mpesa For Business Smartphone App, Safaricom CEO Peter Ndegwa said, “Small and medium businesses now have a technology that will help them grow, Business owners with a business Paybill can now send money to other M-Pesa customers to pay wages, pay for supplies and make payments to other businesses through the app.”
Users of the new development will enjoy among other features, the access to analysis in figures to track their collections and disbursements, view their statements in real-time, and make easy payments through the App. This will be one of Safaricom’s new income streams as the transactions will be charged at normal money transfer rates therefore a major boost on the company’s earnings from mobile money transfer which contributes up to a third of their revenues. It’s indeed a new dawn for business and the invention has come at the most needed time.
Author: Felix Mbaka, Finance, and Economics
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