M-Shwari Proves Successful Soon After Launch

What's Next In Payments®
7:10 PM EDT January 7th, 2013

The end of 2012 saw the launch of a new innovative financial tool by the hands of those behind M-Pesa. M-Shwary was launched in Kenya to allow users to save and borrow money via their cell-phones, without the need of a traditional bank account.

Now, a few months after the launch, M-Shwari has crossed the Sh1 billion ($11.6 million) mark and threatens to take the place of more traditional financial institutions.

“We are overwhelmed at how well the product has picked up and the show of confidence from our customers. This product will clearly change the game in the local financial sector,” Mr Jeremy Ngunze, the Commercial Bank of Africa (CBA) chief executive told national newspaper the Nation.

Those behind this hike in subscriptions and savings are those in the 25 to 30 age gap, mostly already avid users of the M-Pesa platform. The high penetration of mobile in the country and the lack of a developed formal banking structure have put M-Pesa and M-Shwari at the forefront of financial inclusion in the country.

“We have adopted a different strategy from what other players are applying to increase their footing and reach to potential customers at the grassroots level. We believe this was the right decision because we now have easy access to millions of new customers given the level mobile penetration Kenya enjoys,” Mr Ngunze said.

M-Shwari’s success has pushed the platform’s developers to prepare its expansion to neighbouring country Tanzania.

Also by This Author
What's Hot
Loyalty & Rewards
Payment History Firm Pulls In $70 Million Investments
Bitcoin Platforms Being Reclassified As Money Transmitters
Apple Pay Tracker
Wireless Carriers Could Be Left Out Of NFC Payments
Apple Pay Tracker
What CurrentC Didn’t Say
View All Articles ››
You May Also Like
Company Spotlight
Different mPOS Strokes for Different mPOS Folks
Digital River Offers A Sneak Peak At Mobile eCommerce Trends
Mobile Commerce
Trustwave Buys Cenzic To Beef Up App Testing Capability
B2B Payments
WEX Comes Off Q3 With Strong Results
Transforming Payments from Cost Centers to Revenue Drivers
B2B Payments
U.S. Bank Tries To Streamline B2B Electronic Payments
CA Technologies
Online Transacting Is Safer Than A Card Present World
View All Articles ››