The imapct of mobile banking: a case study of M-Pesa in the Kenyan society
In March 2007, Kenya's largest mobile network operator, Safaricom (part of the Vodafone Group), launched M-PESA, an innovative mobile banking service for the unbanked. 'Pesa' is the Swahili word for cash; the 'M' is for mobile. Since then the growth of M-Pesa has been explosive and is a clear sign that M-PESA fills a gap in the market. The purpose of this study is to determine the economic and social impact of mobile banking such as M-PESA to the society in Kenya. The respondents were selected from a representative sample of the close to 10 million M-Pesa registered users (Safaricom Annual Financial Report, 2010) and a number of selected M-Pesa authorized agents. Questionnaires were used to collect the primary data which was supplemented with some secondary data from Safaricom. Various statistical analysis techniques such as descriptive statistics, difference of means and Chi-Square test were used to measure the social and economic impacts M-Pesa has had. From the findings it was revealed that indeed M-Pesa had had a huge impact on the Kenyan society both economically and socially. Also from the research study other interesting findings were discovered that could contribute to improving M-Pesa as a service. Finally, the research study recommends the need for further studies possibly targeting other mobile banking services across Kenya.