<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:x="urn:schemas-microsoft-com:office:excel" xmlns:p="urn:schemas-microsoft-com:office:powerpoint" xmlns:a="urn:schemas-microsoft-com:office:access" xmlns:dt="uuid:C2F41010-65B3-11d1-A29F-00AA00C14882" xmlns:s="uuid:BDC6E3F0-6DA3-11d1-A2A3-00AA00C14882" xmlns:rs="urn:schemas-microsoft-com:rowset" xmlns:z="#RowsetSchema" xmlns:b="urn:schemas-microsoft-com:office:publisher" xmlns:ss="urn:schemas-microsoft-com:office:spreadsheet" xmlns:c="urn:schemas-microsoft-com:office:component:spreadsheet" xmlns:odc="urn:schemas-microsoft-com:office:odc" xmlns:oa="urn:schemas-microsoft-com:office:activation" xmlns:html="http://www.w3.org/TR/REC-html40" xmlns:q="http://schemas.xmlsoap.org/soap/envelope/" xmlns:rtc="http://microsoft.com/officenet/conferencing" xmlns:D="DAV:" xmlns:Repl="http://schemas.microsoft.com/repl/" xmlns:mt="http://schemas.microsoft.com/sharepoint/soap/meetings/" xmlns:x2="http://schemas.microsoft.com/office/excel/2003/xml" xmlns:ppda="http://www.passport.com/NameSpace.xsd" xmlns:ois="http://schemas.microsoft.com/sharepoint/soap/ois/" xmlns:dir="http://schemas.microsoft.com/sharepoint/soap/directory/" xmlns:ds="http://www.w3.org/2000/09/xmldsig#" xmlns:dsp="http://schemas.microsoft.com/sharepoint/dsp" xmlns:udc="http://schemas.microsoft.com/data/udc" xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:sub="http://schemas.microsoft.com/sharepoint/soap/2002/1/alerts/" xmlns:ec="http://www.w3.org/2001/04/xmlenc#" xmlns:sp="http://schemas.microsoft.com/sharepoint/" xmlns:sps="http://schemas.microsoft.com/sharepoint/soap/" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:udcs="http://schemas.microsoft.com/data/udc/soap" xmlns:udcxf="http://schemas.microsoft.com/data/udc/xmlfile" xmlns:udcp2p="http://schemas.microsoft.com/data/udc/parttopart" xmlns:wf="http://schemas.microsoft.com/sharepoint/soap/workflow/" xmlns:dsss="http://schemas.microsoft.com/office/2006/digsig-setup" xmlns:dssi="http://schemas.microsoft.com/office/2006/digsig" xmlns:mdssi="http://schemas.openxmlformats.org/package/2006/digital-signature" xmlns:mver="http://schemas.openxmlformats.org/markup-compatibility/2006" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns:mrels="http://schemas.openxmlformats.org/package/2006/relationships" xmlns:spwp="http://microsoft.com/sharepoint/webpartpages" xmlns:ex12t="http://schemas.microsoft.com/exchange/services/2006/types" xmlns:ex12m="http://schemas.microsoft.com/exchange/services/2006/messages" xmlns:pptsl="http://schemas.microsoft.com/sharepoint/soap/SlideLibrary/" xmlns:spsl="http://microsoft.com/webservices/SharePointPortalServer/PublishedLinksService" xmlns:Z="urn:schemas-microsoft-com:" xmlns:st="" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv=Content-Type content="text/html; charset=us-ascii">
<meta name=Generator content="Microsoft Word 12 (filtered medium)">
<style>
<!--
/* Font Definitions */
@font-face
{font-family:"Cambria Math";
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Tahoma;
panose-1:2 11 6 4 3 5 4 4 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:12.0pt;
font-family:"Times New Roman","serif";}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-priority:99;
color:purple;
text-decoration:underline;}
p
{mso-style-priority:99;
mso-margin-top-alt:auto;
margin-right:0in;
mso-margin-bottom-alt:auto;
margin-left:0in;
font-size:12.0pt;
font-family:"Times New Roman","serif";}
span.EmailStyle18
{mso-style-type:personal-reply;
font-family:"Calibri","sans-serif";
color:#1F497D;}
.MsoChpDefault
{mso-style-type:export-only;}
@page Section1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.Section1
{page:Section1;}
-->
</style>
<!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body lang=EN-US link=blue vlink=purple>
<div class=Section1>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>I think this will be dictated by my estimate of 8 - 12M or so safaricom
subscribers. If the bulk of that lot is not using the Mpesa product
(frequently), then indeed it’s the end of the road for the agents.</span><span
style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Edwin<o:p></o:p></span></p>
<div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'>
<p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>
kictanet-bounces+eonchari=lynxbits.com@lists.kictanet.or.ke
[mailto:kictanet-bounces+eonchari=lynxbits.com@lists.kictanet.or.ke] <b>On
Behalf Of </b>Francis.Hook@gmail.com<br>
<b>Sent:</b> Wednesday, September 08, 2010 3:32 PM<br>
<b>To:</b> Edwin<br>
<b>Cc:</b> KICTAnet ICT Policy Discussions<br>
<b>Subject:</b> [kictanet] Might M-Kesho sound the death knell for (some)
M-Pesa Agents?<o:p></o:p></span></p>
</div>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal>1 - Equity Bank has abt 4.5 million customers. <br>
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)<br>
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"). <br>
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...<br>
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. <br>
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). <br>
<br>
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.<br>
<br>
My two cents...<br>
<br>
Francis <o:p></o:p></p>
<p><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>No virus
found in this incoming message.<br>
Checked by AVG - www.avg.com<br>
Version: 8.5.441 / Virus Database: 271.1.1/3121 - Release Date: 09/08/10
06:07:00</span><o:p></o:p></p>
</div>
</body>
</html>