Mobile money giants, M-Pesa, announced a revenue increase of 34.4%, amounting to $106m in the second quarter of 2023.
Vodacom CEO, Shameel Joosub, revealed that the company also grew its customer base with an addition of 400,000 new users.
Currently, M-Pesa serves an impressive 51 million customers across seven countries, offering vital last-mile financial services.
One of the most notable factors contributing to M-Pesa’s success was its focus on lending and savings.
According to Joosub, nearly 60% of the subsidiary’s growth in the last quarter was driven by lending and savings services.
Joosub further stated, “We added 400,000 M-Pesa customers in the quarter, with penetration of our one-month active base at 45.0%.”
M-Pesa’s loan offerings like Songesha in Tanzania and Txuna in Mozambique facilitated loans worth a significant $238 million.
Additionally, the brand witnessed a remarkable 5.8% increase in transaction values processed on their platform, totaling $368 billion.
Financial inclusion has been a central focus for M-Pesa, and this impressive performance aligns perfectly with its mission.
Joosub emphasized the importance of financial services as a strategic priority, resulting in a remarkable 46.2% increase in revenue, crossing the R3 billion mark in a single quarter for the first time.
Notably, M-Pesa’s network expanded last week as Bangladesh and Pakistan joined the platform. This development follows a strategic partnership between Safaricom and TetraPay, enabling customers to send and receive money seamlessly in these countries.
Looking ahead, M-Pesa is set to make an even greater impact as it prepares to launch in the Ethiopian market by the end of Q3 in September.
This expansion will mark another milestone for the mobile money service, promising to advance financial inclusion further across Africa and beyond.
