The latest reports by the Communications Authority of Kenya (CA Kenya) shows that the value of business transactions via Lipa Na MPESA (Pay with MPESA) are now more than peer-to-peer (P2P) transactions for the first time.
This is a major milestone in money transfer in Kenya as increased focus on SMEs and the demand to enhance tools for business purposes grows.
SEE ALSO: Safaricom Bonga Points – A Case for a New Digital Currency in Kenya?
The MPESA transaction figures for Q1, 2020 are as follows:
- Customer-to-Business (C2B) transactions – KES 310.1B accounting for 98% 98% of all C2B transactions in Kenya
- Business-to-Business (B2B) transactions – KES 878.1B
- Customer-to-Government (C2G) transactions – ES 11B
- Peer-to-Peer (P2P) transactions – KES 673.6B
The C2B and B2B transactions are expected to see further growth with the addition of a new feature that allows businesses using the Lipa Na MPESA app to withdraw money instantly from either their phone or bank account being rolled out.
The evolution of Lipa Na MPESA, since its roll out in March 2007, has seen the addition of new features every year making it easier and more convenient for businesses to use the service.
Below is a quick timeline of this evolution since inception:
- 2007 – The launch of MPESA
- 2013 – The launch of Lipa Na MPESA
- 2015 – The launch of Lipa Na MPESA APIs
- 2017: The launch of Daraja APIs for enhanced checkout for businesses
- 2020: The launch of direct transactions from business TILL numbers
The ability to enable businesses instantly access and transact money from their business wallets has been very well received. These instant transactions on business TILLs makes it possible for businesses to almost instantly access supplies and finance bills and conduct business much faster.
The evolution of mobile money in Kenya is laying a firm foundation for the next evolution in mobile money and the current tools form a great backdrop of what to expect as the move towards cryptocurrencies accelerates across the African continent.
Follow us on Twitter for latest posts and updates
Open a Paxful Bitcoin Trading Account today!
