Safaricom unveiled its m-Pesa1tap devices, allowing mobile money payments using a branded contactless card, wristband or sticker placed on the back of mobile devices.
In a statement, the company said the system is designed to enhance its m-Pesa mobile payments system by reducing the number of steps required to conduct a transaction from eight to one tap, adding the range of devices will be sold on their speed, security and “error free” operation.
The devices are initially available in Nakuru, Kenya’s fourth largest city, but will soon be rolled out throughout the country.
Safaricom announced the m-Pesa devices during the company’s annual results presentation, which revealed the mobile money service fueled growth in the financial year ended 31 March 2017.
Impact on bottom line
The m-Pesa service accounted for 27 per cent of Safaricom’s total service revenue during the year, compared to 23.3 per cent in the year to end-March 2016. The money service was the second largest contributor to total service revenue after voice, which generated 45.8 per cent in the recent year compared with 51.1 per cent in the previous 12 month period.
Its total mobile money user base stood at 26.6 million at end-March, up 12.3 per cent year-on-year. The number of agents accepting the platform across Kenya grew 34.5 per cent during its fiscal year to 135,544.
Revenue attributed to m-Pesa increased by 32.7 per cent during the year to KES55.1 billion ($533 million).
The company’s total annual net profit increased 27.7 per cent year-on-year to KES48.44 billion.
“Focus on financial inclusion remains critical in our strategy to transform lives,” Safaricom CEO Bob Collymore said, adding: “We shall continue to drive the uptake of cashless business payment transactions by merchants, grow the number of transactions by active users and drive further adoption of savings and uptake of loans through m-Pesa.”