The announcement by the Kenyan government of a new 10 percent tax in March 2013 endangered the future prospects of M-Pesa, Safaricom's mobile money transfer service, which had transformed the way cash moved in Kenya. The brand new tax would be levied on all cash transmits but was mainly targeted at M Pesa, which dominated around 80 percent of the cash transfer market.
M-Pesa and Mobile Money in Kenya Pricing for Success Case Solution
The case presents the structure Safaricom established in order to extend a mobile money transfer service in Kenya. As a concept, M-Pesa was unprecedented in Kenya: would-be customers had to get comfortable with the thought a mobile communications company could supply a payment system, that trades could be commenced through a mobile phone, and that nonbank factory outlets could provide cash-in/cash-out services. When the concept was accepted, however, customers needed a convenient network of representatives to manage trades, and to be able to be motivated to become representative factory outlets stores needed to see demand from customers. So, in order to grow, M-Pesa get and needed to aggressively pursue both agents and clients in this two-sided market.
PUBLICATION DATE: December 04, 2013 PRODUCT #: KEL762-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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