Pundit, here's an objective analysis of M-Pesa

[Nefertiti]

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https://www.theelephant.info/features/2019/06/11/another-false-messiah-the-rise-and-rise-of-fin-tech-in-africa/


Another False Messiah: The Rise and Rise of Fin-tech in Africa
Published 3 days ago on June 11, 2019 By Milford Bateman, Maren Duvendack and Nicholas Loubere

Fin-tech represents a new form of resource extractivismParallels with the failed microfinance revolution? Editors Note: This article was first posted in the Review of African Political Economy (ROAPE)

Read more at:

https://www.theelephant.info/features/2019/06/11/another-false-messiah-the-rise-and-rise-of-fin-tech-in-africa/

The Elephant - Speaking truth to power.

[hk]

Mpesa has greatly improved efficiency of kenya economy. The real impact of Mpesa is felt in ease of transacting. Yes Mpesa is foreign owned and profits are repatriated to foreign owners. Gambling and shylock loans (downside to Mpesa) are government induced problems. Shylock loans; Fiscal indiscipline of government. Gambling; dearth of real economic opportunities in the economy courtesy of government.
Equitel is making a real dent on mpesa dominance especially on business transaction end. This should gradually lower cost of Mpesa. Also Pesalink is another option that can effectively be used to increase competition in the marketplace.  Mpesa benefits to the economy outweigh "foreign  and gov ownership, execs overpayment  etc In My humble opinion.

[RV Pundit]

Nonsense.

[hk]

Robina;
Are there similarities of facebook new crypto payments system and Mpesa?

[Georgesoros]

Robina,
This is a great analysis. I wont dismiss, and I wont adopt it either.
In my opinion, Mpesa has improved lives of Kenyans in a significant way. Used to take a whole day to do banking, but now it takes seconds. The saved time can be spent procrastinating and building castles in wonderland.

[RV Pundit]

Robina,
This is a great analysis. I wont dismiss, and I wont adopt it either.
In my opinion, Mpesa has improved lives of Kenyans in a significant way. Used to take a whole day to do banking, but now it takes seconds. The saved time can be spent procrastinating and building castles in wonderland.

so commonsensical.So nonsensical what those fools wrote.I have worked with MIT Kenyan Indian Taavit and Prof Jack
on the study so I am maybe biased but ask even your grandmother they will tell you mpesa is life saver.Shutdown mpesa for 1 day and Kenya may revolt.

[vooke]

[GeeMail]

Is it right to conclude from the analysis that in the bigger picture, MPesa is not a productive enterprise but an exploitative one like the betting companies?

[vooke]

Is it right to conclude from the analysis that in the bigger picture, MPesa is not a productive enterprise but an exploitative one like the betting companies?

You can't show any benefits to betting.

I'd love to see how much agents earn as commission from MPesa

[GeeMail]

Is it right to conclude from the analysis that in the bigger picture, MPesa is not a productive enterprise but an exploitative one like the betting companies?

You can't show any benefits to betting.

I'd love to see how much agents earn as commission from MPesa

That's the thing. If MPesa were as great as it sounds, there would have been some visible trickle down effect from Collymore to the agent greater than Uhuru's nyama nyama crumbles falling under the table.

[bryan275]

MPESA seems brilliant because banking and financial services were so bad in Kenya.  It's not that MPESA is this wonderful fintech.

[Nefertiti]

MPESA seems brilliant because banking and financial services were so bad in Kenya.  It's not that MPESA is this wonderful fintech.

Yes it's not a big invention... the gig economy of Ubers n boda bodas n whatnot it enables is the best advantage. Otherwise it is now a dinosaur or antique going to be displaced soon by Facebook Libra. 10 year old product with ZERO improvements tells you it's a fluke. VC's and such alittle sophisticated models walishindwa kabisa.

[vooke]

MPESA seems brilliant because banking and financial services were so bad in Kenya.  It's not that MPESA is this wonderful fintech.

[RV Pundit]

Mpesa is success in many countries now... nearly in all countries of sub Saharan Africa except south Africa and Nigerians who bungled it up by allowing banks rather than telecoms to ran it

[Nefertiti]

I think you mean MOBILE PAY is a hit in 3rd world... no brainer with the big banking gap a decade ago. M-Pesa is only dominant in Kenya and marginal in a few others.

Mpesa is success in many countries now... nearly in all countries of sub Saharan Africa except south Africa and Nigerians who bungled it up by allowing banks rather than telecoms to ran it

[RV Pundit]

I use to say that - until I stopped using my atm card. It more advanced than what you have abroad - atms - it as good as everyone having say online banking - digital money. I mean even Facebook are trying to copy-paste it.

And yes it hit the roof on many countries in africa - zim, ghana, rwana, tanzania, uganda and many others - are  following kenya. Somalia is also very much ahead. The laggards are Ethiopia, Nigeria (they messed up) and likes of Congo.

I think Zim have used it to deal with printing currency - and hyper-inflation...so all the money there went mobile.

The future is cashless mobile money like Zim. You don't need ATM when you have phone that acts as everything else - the phone is the new computer - with cameras and 1 million plus apps.So if you money is linked to your sim card or phone number - and you can literally use it to pay anything - what else do you want.

https://www.csmonitor.com/World/Africa/2018/0813/A-nearly-cashless-Zimbabwe-tests-the-limits-of-mobile-money

I think you mean MOBILE PAY is a hit in 3rd world... no brainer with the big banking gap a decade ago. M-Pesa is only dominant in Kenya and marginal in a few others.

[Nefertiti]

Ai Pundit - the debate is about M-Pesa - instead you post a thesis on FinTech in Sub Sahara. M-Pesa ni Kenya tu - Zim ni EcoCash, etc. Basically it's not an invention anymore than saying every phone manufacturer has copied Siemens or Nokia. Yet Apple or Huawei phones are minting billions for years. Safaricom or Vodafone were only first to market but did not invent FinTech nor scale across the borders. Alipay or Paypal is a proper trailbazer. M-Pesa ni digital money order, no single patent or trademark cause there is no intellectual property.

I am not being petty or argumental, M-Pesa is a very poor example of successful innovation, cause it's a pure fluke with little for any serious techpreneur to study. Why does AliPay, Uber and such scale globally while M-Pesa flop so hard? Cause strategy iko chida - I told you about leverage - of the factors of production especially the global talent pool. But Safaricom straightjacket themselves by remaining as a telco vertical - instead of going full tech like everyone else worth mentioning.

[RV Pundit]

Robina, Mpesa is owned by Vodafone and Safaricom cannot compete with Vodafone.But I feel you're shifting debate as always by raising all sort of silliness.

[Nefertiti]

They failed to knick it in TZ, Afghanistan and other places they piloted. The Vodafone shackles is an excuse for failure. Inside Safaricom - if you know people - noone stop them from launching global products.