An Analysis of M-Pesa Use in International Transactions

Abstract

In recent times, inexpensive mobile phone technology has become widely available in developing nations and enhanced the emergence of mobile money transfer services. A good example of such a service is Safaricom’s M-Pesa, which was introduced in March 2007, in Kenya. The program has extensively grown in terms of subscribers and the amount of electronic funds transferred through it. M-Pesa’s local success has prompted its launch in a number of countries outside Kenya. This study indicates that culture, competition, regulatory requirements and impact on the economy affect M-pesa use in international transactions. Furthermore, the study shows that M-Pesa is ahead of 34 Kenyan banks in international money transfers. The study finally gives recommendations on M-Pesa use in international transactions.

Keywords: M-Pesa, International Business