Why M-Pesa Failed in South Africa

Thursday, May 12, 2016

South Africa’s largest mobile phone operator Vodacom has announced it will be scrapping its M-Pesa mobile money transfer system in Africa’s second-biggest economy.

For many pundits the move comes as a surprise, because M-Pesa has been a huge success in other African states – especially in Kenya where it was launched in 2007.

The service allows people without bank accounts to transfer money quickly, easily and safely using their mobile phones.

According to a World Bank report, only 12% of Africans with bank accounts use mobile money services.

However, this is not the case in South Africa.

Source: BBC (link opens in a new window)

digital payments, fintech