Telecoms giant Vodafone launched the mobile money app in Romania last August, and this launch has sent shock waves throughout the world's mobile industries and is one of the most important pieces of Africa mobile news in the last year or so! See why is this an important step for the African mobile industry, what this means for Romanians, as well as potentially other people around the world here: http://www.amgoo.com/blog/africa-mobile-news-from-africa-with-love.-m-pesa-lands-in-romania M-Pesa is a mobile money transfer app forged in the creative hub of Kenya in 2007 by a partnership between Safaricom and Vodafone. Since then it has exploded in Kenya, and throughout much of Africa as well. It triumphs because of its simplicity, and how much easier it makes lives for people in Africa who may not have easy access to banking services. In fact, it is now so important in Kenya, that it took almost US$22 Billion in transactions, equating to around 60 percent of Kenya’s GDP, in 2013! With this app you will sign up, and add cash to your account at a registered agent, and then you may: Pay bills Transfer money to others Deposit, or withdraw money Take payments from people Pay for everyday items All of this is done by using SMS on even the less advanced feature phones which are common in Africa due to their low cost! For instance, you will send the payment for an item to someone via an SMS in the system, when they receive it they can then go to a registered agent and collect the cash by showing the SMS from you. Simple right? There is even often only a very small, or no charge at all, making it accessible for all. Finally, since you only require SMS to use it, this means that in countries or areas where smartphones are not yet common, this is an app that is still very much available to all (as opposed to iOS or Android apps which require a smartphone). Now people only need to go to an agent occasionally to top up their mobile wallet with cash, and then can exist in an almost cashless way that requires no access to banks, credit cards, etc. No wonder this service has become so popular in Africa, and the developing world, where local banking infrastructure is not very widely developed!

1. Africa Mobile News: From Africa With Love. M-Pesa
Lands In Romania
amgoo.com /blog/africa-mobile-news-from-africa-with-love.-m-pesa-lands-in-romania
Feb 5, 2015 8:00:00 AM
Exports from Europe to Africa are fairly commonplace, but it's not so often that we hear about exports
going the other way.
All that changed recently, as wildly popular money transfer app, M-Pesa, made its way from East Africa
to Eastern Europe!
Telecoms giant Vodafone launched the mobile money app in Romania last August, and this launch has

2. sent shock waves throughout the world's mobile industries and is one of the most important pieces of
Africa mobile news in the last year or so!
But why is this an important step for the African mobile industry, and what does this mean for
Romanians, as well as potentially other people around the world?
What is M-Pesa?
M-Pesa is a mobile money transfer app forged in the creative hub of Kenya in 2007 by a partnership
between Safaricom and Vodafone. Since then it has exploded in Kenya, and throughout much of Africa
as well. It triumphs because of its simplicity, and how much easier it makes lives for people in Africa
who may not have easy access to banking services. In fact, it is now so important in Kenya, that it
took almost US$22 Billion in transactions, equating to around 60 percent of Kenya’s GDP, in 2013!
With this app you will sign up, and add cash to your account at a registered agent, and then you may:
Pay bills
Transfer money to others
Deposit, or withdraw money
Take payments from people
Pay for everyday items
All of this is done by using SMS on even the less advanced feature phones which are common in Africa
due to their low cost!
For instance, you will send the payment for an item to someone via an SMS in the system, when they
receive it they can then go to a registered agent and collect the cash by showing the SMS from you.
Simple right?
There is even often only a very small, or no charge at all, making it accessible for all.
Finally, since you only require SMS to use it, this means that in countries or areas where smartphones
are not yet common, this is an app that is still very much available to all (as opposed to iOS or Android
apps which require a smartphone).

3. Now people only need to go to an agent occasionally to top up their mobile wallet with cash, and then
can exist in an almost cashless way that requires no access to banks, credit cards, etc. No wonder this
service has become so popular in Africa, and the developing world, where local banking infrastructure
is not very widely developed!
Why Romania?
For the reasons mentioned above, Romania, despite being in Europe, has relatively poor banking
infrastructure, and so Vodafone saw the opportunity to launch this mobile banking service which could
both improve people's lives, and of course make them some money!
Claire Alexandre, who leads the app’s Commercial and Strategy team within the Vodafone group,
commented:
“We chose Romania because there was, and there is still, a large part of the population
which doesn’t have a bank account. Only about 50 percent of the population of Romania
has a bank account. And the other half is mostly still using cash.” (Source)
So in fact Romania is much like many of the African and Asian countries that have already embraced
mobile money due to its convenience for those that lack access to sophisticated banking.
This similarity is reinforced by Jack Kent, a mobile analyst for IHS Technology in London, who stated:
"So far, M-Pesa has found success in similar markets that have relatively low
smartphone adoption, less access to financial services and credit cards, and that are
predominantly prepaid.
In Central and Eastern Europe, credit card penetration is below 20 percent and prepaid
mobile plans are used by 70 percent of subscribers." (Source)
Clearly it doesn't matter if you're African, or European, if there is a need for something in your life, then
you will embrace the product or service that fulfills it and makes your life easier.

4. Now that Vodafone has gained a foothold for mobile money in Europe, who would bet against other
less-developed Eastern European countries jumping aboard the bandwagon in the coming years?
Vodafone has a presence in Turkey, Albania, the Czech Republic, Russia, Serbia, Hungary, the
Ukraine, and Poland, all of whom have a population who could potentially benefit from mobile money
transfer services like this one!
It is even suggested that in the future it could gain a loyal following in Western European countries
where banking services are widespread, since the large immigrant population there can use this kind of
mobile money app that's popular in their homeland, to send money home to relatives very easily.
Your Turn...
Do YOU use M-Pesa? How has it improved your life?
If you are in Romania, or one of the other European countries mentioned, would you welcome a
convenient way to pay and transfer money via SMS that doesn't rely on a bank?
Please let us know by commenting below...
Learn more about popular money transfer apps here.
Looking to upgrade to a new but affordable smartphone soon?
Take a look at AMGOO's range by clicking below, and the good news is that they can all use SMS
based mobile money apps too:
Topics: Africa mobile industry, mobile money