Knowledge economy -Uber drivers with good rating to get car loans.

[RV Pundit]

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This is the future of business and economy.
https://www.bloomberg.com/news/articles/2016-05-25/forget-credit-ratings-uber-driver-quality-ensures-loan-in-kenya

[hk]

This is the future of business and economy.
https://www.bloomberg.com/news/articles/2016-05-25/forget-credit-ratings-uber-driver-quality-ensures-loan-in-kenya

From the article Mpesa did $50b annual. If that figure is correct then kenya economy must be bigger than $70b. What's Mpesa market share of overall transactions. 

[RV Pundit]

It was still less than 10% (transaction value) when I saw the stats but rising rapidly. RTGS/ATM/TrunctuatedCheques/EFT were still doing large transaction value.Mpesa wins in terms of  the number of transactions (volume). Generally speaking M-pesa still has lots of room to grow and eat into rtgs/cheques/ATM/ . It moving there...from p2p system..to a full payment system.

From the article Mpesa did $50b annual. If that figure is correct then kenya economy must be bigger than $70b. What's Mpesa market share of overall transactions. 

[RV Pundit]

RTGS transact 100B while M-pesa has risen to 15b daily...I recall few yrs ago it was transacting 2B...so I think in maybe another 5yrs..we might see Mpesa doing 50% of value -and will be the default payment system in kenya.
http://www.standardmedia.co.ke/business/article/2000217951/kenyans-transact-sh100b-daily-through-central-bank-s-rtgs

M-pesa growth in value and volume is still on steroid...with mpesa processing 900 transactions per second..making one of world busiest payment system.

http://www.nation.co.ke/news/MPesa-transactions-rise-to-Sh15bn-after-systems-upgrade/1056-3194774-llu8yjz/index.html

[hk]

With the uptake of Lipa na Mpesa basically merchant payments Mpesa volume will keep going up. Mpesa might even enable liftoff of ecommerce , Mpesa and readily available cheap transport especially for small parcels, motorcycles.

[RV Pundit]

I think for me the excitement is not really in replacing the existing working payment system with Lipa na M-Pesa but the illumination of the informal/black economy sector, the bringing them on-board and the formalization of the financial & inter-mediation services will eventually lead to formalization of the whole economy - and will enable KRA for example to easily tax it (imagine if KRA was to enforce a transaction tax of say 3sh per transaction (nobody will feel it) -and you have 50m transaction daily -so that 150M per day-- 50B per annum--enough to finance Railway project every year - and enable informal sector to be able to borrow & access financial services like insurance - that they can't coz - nobody has their financial history.

The elimination of cash should be soon be possible when everyone accept lipa na m-pesa! Personally I carry less and less cash although there are still sectors you can't pay digitally - matatus and whole transport sector for one -is still cash based - and that is lots of billions of cash.

With the uptake of Lipa na Mpesa basically merchant payments Mpesa volume will keep going up. Mpesa might even enable liftoff of ecommerce , Mpesa and readily available cheap transport especially for small parcels, motorcycles.

[RV Pundit]

Look like the tax already exist - so with more m-pesa transactions - the more KRA will get the more needed to finance our budget.
http://www.theeastafrican.co.ke/news/Safaricom-raises-MPesa-tariffs/2558-1681810-view-printVersion-12genbhz/index.html

[hk]

I think for me the excitement is not really in replacing the existing working payment system with Lipa na M-Pesa but the illumination of the informal/black economy sector, the bringing them on-board and the formalization of the financial & inter-mediation services will eventually lead to formalization of the whole economy - and will enable KRA for example to easily tax it (imagine if KRA was to enforce a transaction tax of say 3sh per transaction (nobody will feel it) -and you have 50m transaction daily -so that 150M per day-- 50B per annum--enough to finance Railway project every year - and enable informal sector to be able to borrow & access financial services like insurance - that they can't coz - nobody has their financial history.

The elimination of cash should be soon be possible when everyone accept lipa na m-pesa! Personally I carry less and less cash although there are still sectors you can't pay digitally - matatus and whole transport sector for one -is still cash based - and that is lots of billions of cash.

With the uptake of Lipa na Mpesa basically merchant payments Mpesa volume will keep going up. Mpesa might even enable liftoff of ecommerce , Mpesa and readily available cheap transport especially for small parcels, motorcycles.

You're absolutely right about illumination of the informal sector if most informal transactions are now moving to Mpesa instead of cash. The one thing that needs implementing immediately is M-akiba it will deepen our credit markets and would encourage more businesses to raise debt via mpesa.

[RVtitem]

The knowledge economy is a myth.
https://www.theguardian.com/commentisfree/2016/may/18/knowledge-economy-myth-more-universities-degree
I think knowledge economy is another marketing term for ICT.

[RV Pundit]

And ICT is a myth to you? What shocking ignorance. I seen for instance studies that shows thanks to M-pesa we may see growth of credit by 300-500% by 2020 here in Kenya. We are in a midst of information revolution and kenya is on the driver seat.

The knowledge economy is a myth.
https://www.theguardian.com/commentisfree/2016/may/18/knowledge-economy-myth-more-universities-degree
I think knowledge economy is another marketing term for ICT.

[veritas]

I think for me the excitement is not really in replacing the existing working payment system with Lipa na M-Pesa but the illumination of the informal/black economy sector, the bringing them on-board and the formalization of the financial & inter-mediation services will eventually lead to formalization of the whole economy - and will enable KRA for example to easily tax it (imagine if KRA was to enforce a transaction tax of say 3sh per transaction (nobody will feel it) -and you have 50m transaction daily -so that 150M per day-- 50B per annum--enough to finance Railway project every year - and enable informal sector to be able to borrow & access financial services like insurance - that they can't coz - nobody has their financial history.

The elimination of cash should be soon be possible when everyone accept lipa na m-pesa! Personally I carry less and less cash although there are still sectors you can't pay digitally - matatus and whole transport sector for one -is still cash based - and that is lots of billions of cash.

With the uptake of Lipa na Mpesa basically merchant payments Mpesa volume will keep going up. Mpesa might even enable liftoff of ecommerce , Mpesa and readily available cheap transport especially for small parcels, motorcycles.

Transactions are too small though. I don't think many would consider let's say a thousand buck transaction with mpesa. It's like microfinancing. Mpesa makes up a small percentage of total ecommerce. Credit cards etc. still hold monopoly.