Update: Banking on a mobile phone

Source: http://www.safaricom.co.ke/m-pesa/

The M-Pesa was officially launched on 6 March 2007 and it promises to re-define the meaning of money transfer as we know it in Kenya today.

According to Safaricom’s website M-PESA is a new service that allows one to transfer money using a mobile phone. And Kenya is the first country in the world to use this service, which is offered in partnership between Safaricom and Vodafone.

M-PESA is available to all members of the public, even if they do not have a bank account which to me is the answer to the prayers of rural Kenyans that the mainstream banks have been ignoring for decades.
The charges to be levied are low as promised, as there is no charges for deposits between Kes. 100 and Kes. 35,000. sending money to a registered M-PESA user will cost you Kes 30 for amounts between Kes. 100 and Kes. 35,0000; non-registered M-PESA users will range from Kes. 30 to Kes. 400 for the same amounts.

Withdrawal charges for M-PESA users range from Kes. 25 to Kes. 170 for Kes. 100 to Kes. 35,000 withdrawals and absolutely free for non M-PESA users (as the sender is already billed for that). I can bet a dime no bank in Kenya can match Safaricom’s charges!

The M-PESA service can also be used to buy airtime too.

And Safaricom seems to have done its homework and gone ahead to license agents (though they are still looking for some more in all parts of the country too!).

So folks, go exchange your old SIM cards for the new, or even better, buy a Safaricom line to start sambazing folks in shags the loot!