M-PESA Analysis
2. Individual Level
M-PESA’s initial individual level business model focused on the person-to-person transfers, but it has grown to include person-to-business and business to business transactions. The former transaction, person to person, is for facilitating individual’s access to financial services like mobile money transfer and the latter is for mobile payment involving business.
Person to Business (P2B) and Business to Business (B2B)
M-PESA has evolved into a payment platform that lets businesses send and receive payments. In P2B model, businesses use M-PESA to promotional payments, field staff disbursements, salary disbursements, dividend payments, and government agencies can send payments to and collect fees from people with the B2P …show more content…
M-PESA’s B2B transactions have also led to business models that hadn’t existed before in developing economies, with many start-ups in Kenya. Around 700 businesses now use M-PESA in Kenya. Business owners use M-PESA to pay for business goods and services. Especially for the MSEs, which engage in the various businesses, above all, security and accessibility are the two indispensable factors leading them to use more of M-PESA, expand their business models and make a success at the end both for themselves and their …show more content…
One example is a Matatu SACCO in Murang’s opening an M-PESA window. M-PESA is considered a competitor to Matatus; before M-PESA’s launch, people sent money in envelopes on these minibuses to people in other towns. The manager said anytime there was an accident or some other mishap, drivers worried about the money being stolen, their safety being compromised, and reimbursing lost funds. Now drivers and owners prefer M-PESA because they say it has increased the drivers’ sense of security and reduced theft, and actually increased their business.
2. Business to Business
Another case of security, small business owners and street vendors would often come to their store at the end of their business day in order to deposit part or all of their day’s earning so that they would not have to worry about carrying large sums of money home, thereby taking advantage of the security by using M-PESA. The P2B model enables people to reduce the risk relating to goods and services. Individual obtain the same benefit they do in Person to Person context, and business receive more secure and timely payments.
M-PESA’s initial individual level business model focused on the person-to-person transfers, but it has grown to include person-to-business and business to business transactions. The former transaction, person to person, is for facilitating individual’s access to financial services like mobile money transfer and the latter is for mobile payment involving business.
Person to Business (P2B) and Business to Business (B2B)
M-PESA has evolved into a payment platform that lets businesses send and receive payments. In P2B model, businesses use M-PESA to promotional payments, field staff disbursements, salary disbursements, dividend payments, and government agencies can send payments to and collect fees from people with the B2P …show more content…
M-PESA’s B2B transactions have also led to business models that hadn’t existed before in developing economies, with many start-ups in Kenya. Around 700 businesses now use M-PESA in Kenya. Business owners use M-PESA to pay for business goods and services. Especially for the MSEs, which engage in the various businesses, above all, security and accessibility are the two indispensable factors leading them to use more of M-PESA, expand their business models and make a success at the end both for themselves and their …show more content…
One example is a Matatu SACCO in Murang’s opening an M-PESA window. M-PESA is considered a competitor to Matatus; before M-PESA’s launch, people sent money in envelopes on these minibuses to people in other towns. The manager said anytime there was an accident or some other mishap, drivers worried about the money being stolen, their safety being compromised, and reimbursing lost funds. Now drivers and owners prefer M-PESA because they say it has increased the drivers’ sense of security and reduced theft, and actually increased their business.
2. Business to Business
Another case of security, small business owners and street vendors would often come to their store at the end of their business day in order to deposit part or all of their day’s earning so that they would not have to worry about carrying large sums of money home, thereby taking advantage of the security by using M-PESA. The P2B model enables people to reduce the risk relating to goods and services. Individual obtain the same benefit they do in Person to Person context, and business receive more secure and timely payments.