Tuesday
May 28
2019

Vodacom, Safaricom To Acquire Rights To Vodafone’s M-Pesa

Kenya’s Safaricom has announced that it is partnering with Vodacom to acquire the intellectual property rights to the M-Pesa mobile financial services platform.

Last year Safaricom launched a new Bonga platform, described as a “conversational and transactional social network” that uses the M-Pesa mobile money product as a social network.

The deal, for 12 million euro ($13.4 million), will allow both companies to save in royalties paid to Vodafone. Safaricom currently pays 2 percent of its annual M-Pesa revenue, while Vodafone pays 5 percent in an intellectual property fee from its M-Pesa business. South African-based Vodacom also owns 35 percent of Safaricom, the most profitable company in East Africa.

Photo courtesy of Scott Mainwaring.

Source: PYMNTS (link opens in a new window)

Categories
Finance, Technology
Tags
emerging markets, financial services, fintech, Safaricom