Challenges Faced by Safaricom (MPESA) Limites in Internation Money Transfer

Abstract

The main purpose of this research was to find out the challenges facing Safaricom (MPESA) Limited in international money transfer. The study was guided by the following research questions: What is the effectiveness of Safari com (M-Pesa) international money transfer service? What are the challenges facing Safaricom (M-Pesa) international money transfer service This study used case study design.

Case study studies normally focus on a contemporary phenomenon in its real-life context. Purposive sampling procedure was used to arrive at the sample of the heads of departments who participated in the study. Interview schedules were used as the main data collection instruments. The outcome of the quantitative data from the opened-ended questions was extracted and consequently tabulated using graphs and tables in form of frequencies and percentages. The study found out that: the Safaricom (M-Pesa) international money transfer service was effective mainly because: M-PESA international money transfer provides the clients a cash transfer channel with a greater reach; M-PESA international money transfer ensures a timely and secure method of transaction ; and M-PESA international money transfer lower the transactional cost of funds transfer. Key challenges facing Safaricom (M-Pesa) international money transfer service were found to be: numerous regulatory and bureaucratic controls involved in mobile international money transfer; mobile money transfer system is suspected to fuel illegal money flows; in some countries, mobile money transfer may not be permitted by governments since regulation may be difficult; the mobile money transfer is suspected to nurture tax evasion The study recommended that: Safaricom management should offer intensive public education to convince various stakeholders that mobile money transfer is as secure as other conventional money transfer channels. The company should also design packages to cater to people depending on their social, economic and geographical positions; Mobile money transfer service providers should deploy services primed to encourage and exploit national growth in order to gain faith from governments. They should also elaborate mobile international money transfer operations to government authorities; the government through the ministry of information and communication should come up with policies that are geared towards creation of a favorable environment for mobile money transfer. It should also ensure that these policies are able to regulate against excesses of mobile money transfer to ensure that clients' security and privacy rights are safeguarded