Sunday, October 28, 2012

An Extensive Agent Network Needed for P2P Payments

An extensive agency network seems to be emerging as a fundamental requirement for a successful peer to peer money transfer service in Africa. For instance, Kenya’s M-PESA has more than 40,000 agents countrywide where customers can make and receive payments, payments can be made via Western Union from 70 countries and it has in excess of 900 paybill partners.

Interestingly M-PESA has never really gained traction in South Africa, where it was launched by Vodacom in 2010. Some would blame high fees and a tougher banking environment for that sluggish performance. 

Still, it stands to reason that convenience, in form of lots of places where people can deposit and redeem cash, would be crucial for success. 

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