Vodacom to discontinue M-Pesa mobile payment offering in SA

 

Shameel Joosub. Picture: MARTIN RHODES

Shameel Joosub. Picture: MARTIN RHODES

VODACOM will discontinue its M-Pesa mobile payment offering in SA at the end of June, the mobile network said in a statement on Monday.

“Vodacom’s decision is based on the fact that the business sustainability of M-Pesa is predicated on achieving a critical mass of users. Based on our revised projections and high levels of financial inclusion in SA there is little prospect of the M-Pesa product achieving this in its current format in the mid-term,” CEO Shameel Joosub said in the statement.

The decision does not affect M-Pesa outside SA.

“In other markets where financial inclusion is limited and where there is a more supportive macro environment, M-Pesa continues to gain solid traction based on exponential growth in customer acquisition. Kenya and Tanzania are prime examples of this. It is important to note that this decision does not affect M-Pesa customers in Tanzania, Lesotho, Mozambique and the DRC (Democratic Republic of Congo), where the product continues to grow exponentially,” the statement said.

“Vodacom is fully committed to mitigating any inconvenience to customers impacted by the decision and assures all M-Pesa SA customers that their funds remain safe and readily accessible. We remain of the opinion that opportunities exist in the financial services environment and we will continue to explore these,” Mr Joosub said in the statement.

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Daniel Csoka is a visionary payments strategist and has successfully created and brought to market award-winning emerging payments systems and mobile technologies that have been utilized by over 200M people worldwide. Over the past 20 years focused on emerging payments and alternative financial services, he has assembled patent-pending international ecosystems of mobile network operators, financial institutions, card associations, electronics transactions processors, money transfer operators, retailers and POS networks and successfully sold and brought to market innovative Mobile, Prepaid, Payments, E-Commerce, Virtual Payments, Loyalty and Mobile Money Transfer services globally. He has provided a broad range of marketing, strategic and industry oriented consulting services to mobile operators, card associations, financial institutions, mobile financial services providers, equipment vendors, content providers and electronic transactions processors worldwide in the payments industry. He is proficient at identifying new opportunities and is well-practiced at navigating through complex regulatory environments to bring those visions to market. He is adept at pairing industry trends and best practices with internal business knowledge helping companies shape, formulate and successfully execute their strategy. He effectively blends entrepreneurial instincts with a keen understanding of customers’ needs to consistently deliver best of breed payments solutions. He is a recognized industry expert and frequent industry speaker and has chaired, moderated or spoken at numerous payments conferences and forums worldwide. He has been quoted on various issues related to payments and FinTech in many payments industry related business publications including, among others, PYMNTS.com, Fierce Wireless, RCR Wireless, Wireless Week, Wireless Review, Chicago Tribune, The Prepaid Press, Billing & OSS World, Center for Financial Services Innovation (CFSI), Payments News and Business Week.

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