M-PESA provides over $55 million in credit on a daily basis, while maintaining a non-performing loan rate of under 2%, according to Sitoyo Lopokoiyit MBS, CEO of M-PESA Africa.
“We do not provide credit if there’s no savings solution.” – @Sitoyo CEO, @MPESAAfrica #MPESA @SafaricomPLC pic.twitter.com/ilwdnF2247
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Lopokoiyit participated in the high-level World Governments Summit on a panel titled “Are Emerging Markets Leading the Digital Evolution?” alongside industry leaders such as Vikrant Bhansali, CEO of UBA Group UAE, and Robert Thomson, SVP of Global Government Engagement at VISA International Services Association.
“Every day, M-PESA provides over $55 million in credit with a non-performing loan level of less than 2%. We ensure we aren’t driving over-indebtedness and are focusing on a customer’s financial health.”
When asked about M-PESA’s role in debt sustainability, he reiterated that the company’s primary focus is on “purpose-driven debt,” ensuring credit limits are determined by a customer’s financial behavior.
According to Lopokoiyit, based on “purpose-driven debt,” a customer’s credit limit is based on their savings and transaction history.
“We take what is called a savings-led credit proposition. So we do not provide credit if there is no savings solution, and the more you save, the more your credit limit will increase.”
Addressing the question of M-PESA’s success, he indicated that M-PESA initially focused on solving money transfer challenges caused by rural-to-urban migration. It then expanded to tackle payment issues and eventually ventured into global payments and remittances.
“Throughout, we prioritised consumer education, security, and expanding financial inclusion, and we are now focussing on financial health.”
He further stated that M-PESA is evolving beyond individual financial solutions to support corporate challenges, catering to large organizations, SMEs, and micro-SMEs alike.
“In addition, we offer differentiated products such as Pochi La Biashara for micro-traders which enables them to borrow for their business, while a larger SME can get supply chain financing. Our lending is geared to a purpose rather than just lending for the sake of lending.”
Discussing M-PESA’s future, Lopokoiyit MBS emphasized that partnerships and interoperability will be crucial.
M-PESA customers want to travel and use the service wherever they go, and customers from other financial services want access when they visit M-PESA markets.”
Its latest partnership has seen the launch of Ziidi Money Market Fund (MMF), which has quickly gained traction reaching $22.03 million (KES 2.85 billion) in assets under management within a month of launch, with over 450,000 users onboarded.
[TECH] INTRODUCING | Safaricom’s Money Market Fund, Ziidi, Surpasses $22 Million with Over 450,000 Users Onboarded in Pilot Month: Safaricoms Ziidi Money Market Fund (MMF) has quickly gained traction, reac.. https://t.co/Y9x1DTzwRv via @BitcoinKE
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M-PESA also says it has over 90,000 software developers participating in its ecosystem.
🇰🇪MILESTONE | M-PESA Now Has Over 90,000 Developers Building Mobile Money Integrations on the Platform
Partnerships utilizing Daraja APIs have allowed Safaricom’s #MPESA to expand its integration POS systems, websites, mobile apps etchttps://t.co/i3gICEUHne @SafaricomPLC pic.twitter.com/Nw66wiUerK
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