M-Pesa is a mobile money transfer service launched in Kenya in 2007 by Safaricom. It allows users to deposit, withdraw, and transfer money, and pay for goods and services using a mobile phone. M-Pesa has expanded to other countries and added new services like M-Ledger, M-Shwari, and Lipa na M-Pesa. It makes money through fees on money transfers, withdrawals, and microcredit services. M-Pesa collects large amounts of customer data and partners with other companies to offer an integrated digital platform and expand its services and customer base internationally through reverse innovation.

1. M-PESA
Daniel Marè
Sofia Auddino
Carlo Liviero
Matteo Bianco
Giovanni Fabris
Lucrezia Bestetti
Francesco Ghezze
Alessandra Cancellari

2. Why?
• Was created in order to facilitate and develop money
transfer and financial services.
How?
• Through a phone-base platform, using SIM cards system
What?
• M-Pesa developed a mobile APP
Where?
• Launched in Kenya then in: Tanzania,South Africa,India,
Romania,Albania.
When?
• Launched in 2007 by Safaricom
M-PESA

3. Foundation:
Safaricom launched M-Pesa
E-Commerce:
Added as an extra offering throughout
the online platform and
opening new opportunities
2007
2013
Launch of Lipa na M-Pesa:
It opened up the digital platform
to third-party providers
Change:
Change of organizational
structure

4. New services:
Develop services to serve all
customers segments
Partnership:
Business expansion through
partnerships with banks and
startups
2015
IT:
IT infrastructure improvements

5. Digital Platform Company:
Working everyday in order to
improve customers awareness

6. DIGITALIZATION
PIANO
Business Model
Processes
Structure
People
Offerings
Engagement
IT Capabilities

7. Business Model Analysis
How does M-Pesa make money?
Customer segmentation
less well-off segments of the society
Value proposition
Integrated platform
Customer relationships
200.000 touchpoints
Revenues streams
Money transfer, withdraw and
microcredits
Key resources
Employees expert in
Data analytics
Key partnerships
Collaboration with banks
and startups

8. Structure
• At the beginning it was pyramidal
• From 2013, strategic business units were formed
• Added digital-savvy individuals (CTO and CIO)
• Pyramidal > Functional

9. People
• Recruitment of specialized data
professionals in the last years

10. Processes
• Low-income segments part of the main economic stream
• Multi-channel customer engagement to strengthen loyalty
• 3 new processes:
1. Payment system regulated by a mobile operator
2. Non-bank retail outlets for cash-in/cash-out needs
3. Access and management of a financial account from
a mobile phone

11. IT Capabilities
•Safaricom first Sub-Saharan operator that launched 4G
•To exploit the useful data-flow:
Partnership with Flyxt (Netherlands)
Partnership with Nokia’s CEM
(Customer Experience Management)

12. Offering Analysis
•M-Ledger app (financial journal)
•M-Pesa Chama account (assisted saving groups)
•M-Shwari (paperless banking system)
•P-2-G transactions
(facilitated payments for e-government services)
•Lipa na M-Pesa (using the mobile to purchase goods and services)

13. Engagement Analysis
• CONSUMERS
• Bonga Loyalty program (points for money spent on calls)
• Lipa na M-Pesa Fuel Loyalty Program
(for fuel purchases using M-Pesa)
• A Lottery to incentivize M-Shwari
• START-UPS
• M-Pesa contributed to create a safe e-commerce
environment
• Attraction of many new start-ups thanks to the creation of the
Silicon Savanah in Nairobi
• Start-ups can realize their digital business because of the now
available e-payment methods

14. People
Challenges ThreatsOpportunities:
• Reverse innovation
• Improve the data collection system to use them
in a smarter way
• Partner with web searches or social medias to
analyze behavior patterns
• Manage the float between agents in rural
and urban areas
• Become the private figure in govern fight
to corruption
• Deliver cash assistance with govern and
humanitarian associations
• Fees on M-Pesa transactions imposed by
banks
• Visa new mobile app

15. FINANCIAL AND TECHNOLOGICAL EDUCATION
Stream:awareness, brand engagement
DEVELOPMENT OF CRYPTOCURRENCIES
Stream: customer satisfaction
REVERSE INNOVATION
expanding in the global market
Stream: market share
CREATE A START-UP ECOSYSTEM
Stream: market development,differentiation
DEVELOPMENT OF DATA COLLECTION AND DATA MANAGEMENT
Stream: customer relationship
Digital business roadmap:
defining the objectives and initiatives of M-Pesa

16. FINANCIAL AND TECHNOLOGICAL EDUCATION
Stream:awareness, brand engagement
DEVELOPMENT OF CRYPTOCURRENCIES
Stream: customer satisfaction
REVERSE INNOVATION
expanding in the global market
Stream: market share
CREATE A START-UP ECOSYSTEM
Stream: market development,differentiation
DEVELOPMENT OF DATA COLLECTION AND DATA MANAGEMENT
Stream: customer relationship
Digital business roadmap:
defining the objectives and initiatives of M-Pesa
1

17. FINANCIAL AND TECHNOLOGICAL EDUCATION
Stream:awareness, brand engagement
DEVELOPMENT OF CRYPTOCURRENCIES
Stream: customer satisfaction
REVERSE INNOVATION
expanding in the global market
Stream: market share
CREATE A START-UP ECOSYSTEM
Stream: market development,differentiation
DEVELOPMENT OF DATA COLLECTION AND DATA MANAGEMENT
Stream: customer relationship
Digital business roadmap:
defining the objectives and initiatives of M-Pesa
2

18. FINANCIAL AND TECHNOLOGICAL EDUCATION
Stream:awareness, brand engagement
DEVELOPMENT OF CRYPTOCURRENCIES
Stream: customer satisfaction
REVERSE INNOVATION
expanding in the global market
Stream: market share
CREATE A START-UP ECOSYSTEM
Stream: market development,differentiation
DEVELOPMENT OF DATA COLLECTION AND DATA MANAGEMENT
Stream: customer relationship
Digital business roadmap:
defining the objectives and initiatives of M-Pesa
3

19. FINANCIAL AND TECHNOLOGICAL EDUCATION
Stream:awareness, brand engagement
DEVELOPMENT OF CRYPTOCURRENCIES
Stream: customer satisfaction
REVERSE INNOVATION
expanding in the global market
Stream: market share
CREATE A START-UP ECOSYSTEM
Stream: market development,differentiation
DEVELOPMENT OF DATA COLLECTION AND DATA MANAGEMENT
Stream: customer relationship
Digital business roadmap:
defining the objectives and initiatives of M-Pesa
4

20. FINANCIAL AND TECHNOLOGICAL EDUCATION
Stream:awareness, brand engagement
DEVELOPMENT OF CRYPTOCURRENCIES
Stream: customer satisfaction
REVERSE INNOVATION
expanding in the global market
Stream: market share
CREATE A START-UP ECOSYSTEM
Stream: market development,differentiation
DEVELOPMENT OF DATA COLLECTION AND DATA MANAGEMENT
Stream: customer relationship
Digital business roadmap:
defining the objectives and initiatives of M-Pesa
5

21. Customer segmentation
Enlarge the audience. Access to
international customers thanks
to the reverse innovation. Always focus
on the less well-off segments of the
society
Value proposition Revenues streams
Key resources
Partnerships not only with financial
institutions, but also with companies that
come from different sectors all over the world.
Like insurance firms.
Key partnerships
It will be no more only cash
transactions between users in Kenya,
but it will become transactions between
actors in different countries related to
different services,
Offer the customers an integrated
platform in which users can access
services to manage all the financial
aspects of their lives.
Improve data analysts skills in management of
data, as data are becoming even more important.
New technologies for collection and management
of data.
Future business model

22. Q&A