The Vodacom M-Pesa mobile banking service has been a huge success in many African countries and has recently launched in parts of India. After the huge success the M-Pesa service has had in Africa, it is hoped that the service will have the same impact in India. We take traditional banking services for granted in the West, but huge numbers of people in developing countries simply don’t have access. M-Pesa offers a way of empowering people and allows for the free flow of money in countries like Kenya, Tanzania and now India. M-Pesa adopts a simple, text-based approach to enable users to deposit and withdraw from specific M-Pesa outlets, carry out transfers, make payments at retail outlets and pay utility bills.
The M-Pesa service from Vodacom will target 700m people in India who currently don’t have access to banking services. It is being launched in partnership with ICICI Bank and will initially target 220m people in Eastern areas of India with the aim of reaching the 700m people in India with no access to banking services.
Whereas there is currently a ‘land grab’ in the UK for the potentially lucrative mobile payment market, with the likes of Google, PayPal, VISA, the newly launched WEVE and Retail outlets all jostling for position in what is likely to be a long and complicated process, more simple solutions in developing countries are likely to have more of an impact on peoples everyday lives. It may indeed be places like India and Africa that lead the way with mobile payment services, allowing for countries like the US and UK to learn from the process. Indeed, whereby mobile payments play such a crucial role in peoples lives, the issue of ‘trust’ around the security of the system is circumvented and progress is potentially quicker.
Marten Pieters, managing director and CEO of Vodafone India, stated
For millions of people in India, a mobile phone is a bank account, a front door to a micro-business or a lifeline to people in the remotest areas. Research shows that M-Pesa brings real benefits to users in their daily lives, saving three hours a week of their time and around $3 in money transfer costs – a significant amount to people in some areas.
- Vodafone, ICICI Bank launch mobile wallet service M-Pesa (news.in.msn.com)
- Vodafone Launches M-Pesa In India With ICICI Bank (medianama.com)