Business
Kenya’s mobile money, M-Pesa increasing user’s savings – World Bank
The amount held as electronic float has been on the rise, estimated to be more than 25 percent of the country’s gross domestic product (GDP). Mobile money has contributed to deepened financial inclusion with banks also integrating their systems with mobile platforms to ensure seamless transfer of funds from mobile money to bank accounts and vice-versa.
The platform has penetrated deeper than other financial services since there is less paperwork involved.
The number of agents makes it convenient for customers. Mobile money (M-Pesa) transactions hit KSh1.1 trillion (US$ 13.3 billion) last year up from KSh732 billion (US$ 8.8 billion) in 2010.
The report concludes that mobile savings have the potential to add social value, especially to those constrained by the cost or distance in opening and maintaining traditional accounts with commercial banks.
Source: Business Daily Africa
