M-Pesa, launched in 2007, has revolutionized finance in Africa, with 60 million users and over 17 billion transactions in 2024.
M-Pesa is one of the leading payment methods on the African continent and has become firmly established thanks to its simplicity, wide reach, and ability to drive financial inclusion at scale.
Widely adopted by individuals and businesses across multiple countries, the system has transformed how domestic payments are made throughout the region. In this article, you will learn how M-Pesa works, why it has become so relevant within Africa’s financial ecosystem, and the role it plays in the evolution of payments across the continent.
M-Pesa is a mobile money platform launched in 2007 by Safaricom, Kenya’s leading telecommunications operator, with backing from Vodafone. The name M-Pesa is derived from "M" for mobile and "Pesa," which means money in Swahili. Initially, it was introduced as a way for users to repay microloans using their phones, but over time, M-Pesa evolved into a comprehensive financial service. Today, it allows users to send and receive money, pay bills, save, and even access credit and insurance, all through a mobile phone.
Since its launch, M-Pesa has experienced impressive growth. In 2025, M-Pesa’s transaction volume exceeded $450 billion, marking a substantial impact on the economies of the countries where it operates, such as Kenya, Tanzania, Uganda, and Mozambique. To put this in context, in 2014, M-Pesa transactions accounted for nearly half of Kenya's GDP. With the introduction of services like M-Pesa Fuliza, a credit line for users, and international payment integrations, the platform continues to be a key player in fostering economic growth in many regions.
The impact of M-Pesa has been transformative, particularly in rural areas and among unbanked populations. Before its introduction, many people in Africa, especially in rural areas of Kenya, lacked access to traditional banking services due to the absence of infrastructure. M-Pesa changed this by enabling anyone with a mobile phone to participate in the digital economy.
One of M-Pesa’s greatest achievements has been increasing financial inclusion. By 2025, over 60 million active users in Kenya use M-Pesa, representing a significant portion of the population. This platform has allowed millions of people, who previously had no access to banking, to participate in daily financial transactions. Today, even farmers and informal workers living in remote rural areas can receive payments for their goods or services directly into their phones, eliminating the need for cash and reducing theft risks.
M-Pesa has had a notable impact on agriculture, which is the backbone of many rural economies. Farmers now receive payments for their produce directly through M-Pesa, eliminating the need for physical cash transactions. This ensures faster, safer, and more reliable payments, allowing farmers to reinvest in their businesses and adopt new, more efficient farming techniques, ultimately boosting productivity.
Remittances sent from urban areas or abroad are crucial to many rural households, and M-Pesa has simplified this process. Sending and receiving money is now faster, cheaper, and more secure compared to traditional methods. In 2024, remittances sent through M-Pesa exceeded $3 billion, significantly improving the livelihoods of rural families. Quick access to funds has had a profound impact on the overall financial well-being of these households.
While M-Pesa has made significant strides, there are still several challenges it must address to continue growing. One of the main challenges is limited access to mobile phones and network coverage in remote areas. In many rural communities, the lack of affordable smartphones and reliable mobile networks prevents people from fully participating in the digital economy.
Another challenge is the growing competition in the mobile payment sector. As more telecommunications companies and financial institutions enter the mobile money space, M-Pesa must continue to innovate to maintain its market leadership. Additionally, it must navigate complex regulatory landscapes, as different countries impose varying levels of restrictions on mobile money services.
The future of M-Pesa looks promising. The platform continues to innovate, expanding its services beyond simple financial transactions. Check the main M-Pesa updates:
Safaricom is implementing a deep overhaul of M-Pesa’s technology architecture to make it faster, more resilient, and ready for future functionality. The core infrastructure of this upgrade has already been completed and now serves as the foundation for upcoming user-facing implementations.
With this technological upgrade, M-Pesa is expected to significantly increase its transaction processing capacity, with targets of up to 8,000 transactions per second, supporting much higher volumes as usage continues to grow.
Built on the new Fintech 2.0 platform, M-Pesa is expected to roll out “Tap to Pay” functionality, enabling contactless NFC payments via mobile phones. In addition, features such as “Wallet Sharing” are planned, allowing users to access each other’s wallets for specific use cases, as well as tools for splitting expenses.
The platform is being prepared to integrate AI capabilities focused on fraud detection and proactive protection, while also enabling service personalization based on user behavior, reducing risk and improving the overall user experience.
In the medium term, M-Pesa is expected to evolve into a broad digital hub, integrating multiple financial and non-financial services such as insurance, lending, healthcare, entertainment, and other everyday services into a single platform.
M-Pesa’s expansion into new markets and the improvement of technological infrastructure in more remote areas could further solidify its leadership in mobile payments. As technology advances, embracing innovations like artificial intelligence and blockchain could allow M-Pesa to continue meeting the evolving needs of users and drive economic development across Africa and beyond.
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