Vodafone Group Plc hinted it could spin off its African mobile money service M-Pesa after its popularity soared through the coronavirus pandemic.<\/p>\n
The platform offers peer-to-peer transactions in countries including Kenya, Tanzania, Mozambique, Lesotho and the Democratic Republic of Congo. It\u2019s now pushing into new financial services like small loans, payroll and savings.<\/p>\n
Vodafone Chief Executive Officer Nick Read said it\u2019s logical to keep M-Pesa within the telecommunications group for now, to maintain benefits like distribution and cementing customer loyalty.<\/p>\n
\u201cIn the future, there may be opportunities to scale further,\u201d Read said on a call with reporters on Friday after Vodafone\u2019s first-quarter results. \u201cAt that point I think we would make the decision as to whether we would want to do anything, let\u2019s say, more inorganically.\u201d<\/p>\n
For now, Vodafone has decided to carve out its financial services activities into a new legal entity \u201cto highlight to our investors the size and scale of that business and also offer opportunities to grow it in different ways,\u201d he said.<\/p>\n
Vodafone\u2019s majority-owned South African subsidiary Vodacom Group Ltd. recently partnered with China\u2019s Alibaba Group Holding Ltd. to develop a so-called super-app called VodaPay for new services, as users and potential users upgrade to smartphones.<\/p>\n
\u201cM\u201d stands for mobile and \u201cPesa\u201d means money in Swahili. The platform has embedded itself in several economies, finding popularity where many people have mobile phones but don\u2019t have conventional bank accounts.<\/p>\n
It became even more indispensable under Covid-19 lockdowns: Transactions on M-Pesa soared by 45% in the first quarter from a year earlier.<\/p>\n
Read said the volume of transactions is equivalent to roughly half of Kenya\u2019s gross domestic product, citing Kenya\u2019s Central Bank. Vodafone may launch the service in further markets, he said.<\/p>\n
Vodafone Group hinted it could spin off its African mobile money service M-Pesa after its popularity soared through the coronavirus pandemic.<\/p>\n","protected":false},"author":341034,"featured_media":107292,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[10106],"tags":[1109,41,1789],"class_list":["post-407236","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-m-pesa","tag-vodacom","tag-vodafone"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/407236"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=407236"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/407236\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/107292"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=407236"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=407236"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=407236"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}