Case
Teaching Notes
Supplementary Resources
Abstract
This case was developed in close collaboration with Sagentia and other collaborating organisations including Vodafone and the Kenyan affiliate Safaricom, along with professionals with expertise in mobile finance in an emerging economy context. The case study is directed at senior undergraduate, MBA, or Masters students in innovation, services, information systems, and IT for development. Students are expected to develop strategic thinking on the discovery of business models, collaborative partnerships, diffusion of innovation, user innovation and new service development.
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved
Resources
Appendix 1. Number of M-PESA Subscribers, March 2007–April 2009
Date | No. of subscribers | No. of agent outlets |
Mar 2007 | Service launched | |
Apr 2007 | 52,453 | 355 |
Jul 2007 | 255,708 | 681 |
Oct 2007 | 807,917 | 1,196 |
Jan 2008 | 1,560,607 | 1,812 |
Apr 2008 | 2,373,455 | 2,606 |
Jul 2008 | 3,367,192 | 3,378 |
Oct 2008 | 4,420,279 | 4,781 |
Jan 2009 | 5,478,279 | 7,304 |
Apr 2009 | 6,482,118 | 9,521 |
Source: M-PESA Statistics, www.safaricom.co.ke
Appendix 2. Percentage of Unbanked Population in Selected Countries
Country | Unbanked (%) | Data source |
Australia | 0.8 | Cain 2007 1 |
Bangladesh | 96.3 | Cain 2007 1 |
Egypt | 77.0 | CBC and Visa 2004 2 |
Germany | 2.0 | CBC and Visa 2004 2 |
India | 80.0 | CBC and Visa 2004 2 |
Kenya | 90.0 | Claessens 2006 3 |
Tanzania | 95.0 | Claessens 2006 3 |
Uganda | 99.7 | Cain 2007 1 |
United Kingdom | 9.0 | CBC and Visa 2004 2 |
Sources
1. Cain, R., 2007. Strategies for banking the unbanked: a global market opportunity. London: VRL KnowledgeBank.
2. Commonwealth Business Council and Visa, 2004. Payment solutions for modernising economies. London: Commonwealth Business Council.
3. Claessens, S., 2006. Access to financial services: a review of the issues and public policy objectives. The World Bank Research Observer, 21 (2): 207–240.
Appendix 3. M-PESA Architecture
Appendix 4. M-PESA Advertisements
4a.
4b.
Appendix 5. Key Stakeholders of M-PESA
Phase 1: Pilot (Oct 2005–May 2006) and exploration
Phase 2. Launch (Mar 2007) and the initial success
Phase 3. Expansion and new stakeholders
Appendix 6. List of the Awards for M-PESA, March 2007–April 2009
Awards title | Category | Date | Recipient |
GSMA Global Mobile Awards | Best Mobile Money Service | February 2009 | Safaricom & Vodafone |
AfricaCom Awards | Best Solution for Rural Services | November 2008 | Safaricom |
AfricaCom Awards | Changing Lives | November 2008 | Safaricom |
IET* Innovation Awards | Telecommunications | November 2008 | Sagentia |
World Business and Development Awards | Award winner | September 2008 | Safaricom |
Stockholm Challenge Award | Economic Development | May 2008 | Safaricom |
MCA** Management Awards | Best Private Sector | April 2008 | Sagentia |
MCA Management Awards | Innovation | April 2008 | Sagentia |
MCA Management Awards | Technology | April 2008 | Sagentia |
GSMA Global Mobile Awards | Best Broadcast Commercial | February 2008 | Safaricom |
Kenya Banking Awards | Special Award for Product Innovation | December 2007 | Safaricom |
*IET: Institution of Engineering and Technology
**MCA: Management Consultancies Association
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved