M-Pesa mobile banking launched in South Africa

Sep 01, 2010

Access to banking services in South Africa is expected to improve as a result of the introduction of M-Pesa.

The money transfer service has been launched in the country by Vodacom and will be run in conjunction with Nedbank. Funds can be loaded on and sent to any mobile in South Africa and Vodacom Chief Executive Pieter Uys suggested it may not be long before people are paying for taxi rides using their phones.

"We are planning nothing short of a mobile money revolution in the country," he was quoted by Business Day as saying. "It is a simple idea but also totally revolutionary, particularly in the way we think about mobile technology." Meanwhile, Chief Executive of Nedbank Mike Brown noted the most important aspect of the service may be the pool of potential banking customers created - as users could eventually qualify for home and personal loans.

Technology Review recently reported on an increase in the use of M-Pesa in Kenya, with 40 per cent of adults in the country now accessing the service.