[kictanet] Might M-Kesho sound the death knell for (some) M-Pesa Agents?

[Francis Hook]

Thanks MM - very insightful presentation!

When I reached Slide 5 ("The value proposition ….cake big enough for all") I
held my breath hoping Slide 6 would be  "Cont...The value proposition ….cake
big enough for all"...to see whether the M-Pesa agents would feature
somewhere and get a slice of the cake :-), but alas...

Thanks

F

On 8 September 2010 16:45, muriuki mureithi <mureithi at summitstrategies.co.ke
> wrote:

>  Hi Sir
>
> I admire your thought provoking write ups
>
> See a research we did on the whole mobile money transfer space .  will send
> you a copy of published  paper once done
>
>
>
> Cheers
>
>
>
>
>
>
>
> *From:* kictanet-bounces+mureithi=summitstrategies.co.ke@
> lists.kictanet.or.ke [mailto:kictanet-bounces+mureithi<kictanet-bounces%2Bmureithi>
> =summitstrategies.co.ke at lists.kictanet.or.ke] *On Behalf Of *
> Francis.Hook at gmail.com
> *Sent:* 08 September 2010 15:32
> *To:* mureithi at summitstrategies.co.ke
> *Cc:* KICTAnet ICT Policy Discussions
> *Subject:* [kictanet] Might M-Kesho sound the death knell for (some)
> M-Pesa Agents?
>
>
>
> 1 - Equity Bank has abt 4.5 million customers.
> 2 - Lets wager that abt 70-80% are Safaricom subscribers...(3.15 - 3.6
> million) and possibly 80% of those use M-Pesa (wild guess)
> 3 - A Study conducted in late 2009 (
> http://technology.cgap.org/2009/09/08/understanding-what-drives-profits-for-agents-m-pesa/)
> examined the factors that make an M-Pesa agent make a profit...as well as
> the challenges faced by such agents (which would most times lead them to say
> "hakuna float").
> 4 - As M-Pesa agents have become more pervasive, their profit margins have
> become thinner owing to competition (incl ATMs, super markets, etc). This is
> part of the premise of M-Kesho - to allow such agents to make revenue from
> additional services like insurance...
> 5 - M-Kesho essentially removes the need to have CASH transactions - either
> sending or receiving. However, to the operator the transaction fee still
> accrues, and to the bank, the deposits remain somewhat stable. If anything,
> for corporate users of M-Pesa (KQ, KPLC, etc) they can know have their
> accounts credited directly - no need to use an M-Pesa agent to load cash
> onto phone and then pay KPLC, Kenya Airways, etc.
> 6 - Thinking of the three or so million Equity Bank Customers who are
> M-Pesa users....will they EVER need to use an M-Pesa agent? before the
> routine to send cash was ...a) draw cash from ATM/Branch b)go to M-Pesa
> Agent c) send money - and vice versa to receive (go to mpesa agent, get
> cash, spend/deposit cash) - ergo M-Pesa agent has a role. Of course I admit,
> such account holders can still withdraw from their accounts using M-Kesho
> and get cash from an M-Pesa Agent (but I think this would be really really
> rare).
>
> Will M-Kesho see some rationalisation in the number and size(type) of
> agents? Admittedly some of the more established agents can evolve into FOSAs
> for Equity (and other banks), but I think at the grassroots there might be a
> negative impact.
>
> My two cents...
>
> Francis
>



-- 
Francis Hook
+254 733 504561
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://lists.kictanet.or.ke/pipermail/kictanet/attachments/20100908/3ace2449/attachment.htm>