M-Pesa, Africa’s largest fintech platform, experiences significant growth, driven by lending and savings products gaining traction. In the quarter ending June, these areas contributed nearly 60% to M-Pesa’s expansion, solidifying its position as the continent’s most successful mobile money platform. Jointly owned by Vodacom Group and Safaricom, M-Pesa has become a key revenue stream for both companies, providing mobile money services to over 51 million customers across seven African countries.
M-Pesa’s revenue surged by 34.4% to $106 million in the quarter, with lending services playing a crucial role in this growth. Vodacom Group CEO, Shameel Joosub, highlighted the platform’s success, adding 400,000 new M-Pesa customers in the quarter, with an active base penetration of 45.0%. The lending and savings products showcased robust performance, contributing to nearly 60% of the quarter’s growth. Notably, M-Pesa facilitated loans totaling R4.3 billion, more than double the previous year’s figures, driven by products like ‘Songesha’ in Tanzania and ‘Txuna’ in Mozambique.
The popularity of M-Pesa’s financial and digital services, fixed, and internet of things offerings is evident, as it accounts for nearly one-fifth of the group’s total revenue. Joosub reiterated the group’s commitment to financial services as a strategic priority, with a 46.2% revenue increase, surpassing the R3 billion mark in a quarter for the first time. He emphasized the success of M-Pesa, Africa’s largest mobile money platform, in transaction value and its new services, including loans and merchant services.
The consistent growth of M-Pesa and its expansion into lending and savings products underpins its contribution to financial inclusion in Africa. As M-Pesa continues to thrive, the platform’s revenue streams diversify, reflecting its position as a pioneering fintech platform on the continent.