Mpesa is one of Safaricom’s most profitable ventures. The telecom giant launched MPESA in 2007; having acquired the innovative idea from one, Nyagaka Anyona Ouko, then a college student, according to Tuko.co.ke. In 2020 alone, Safaricom generate a hooping $784.36 billion revenues from Mpesa related transactions according to Statista.com.
On 26th January 2021, Safaricom announced a new development that will allow it to auto-generate invoices, issues receipts, and send payment reminders to customers for free on behalf of sellers.
According to Business Daily Africa, M-PESA Bill Manager for Businesses -an innovation that primarily targets institutions, utility firms, and real estate companies among other businesses with repeat transactions -will help Lipa Na M-Pesa users to improve how they manage their bill cycle payments. Peter Ndegwa, the Safaricom’s CEO, said M-PESA Bill Manager will provide M-Pesa users with a single point for making payments and viewing all transactions. Most importantly, auto-generated receipts are intended to serve as evidence for all payments done through M-Pesa. Mr. Ndegwa, in a statement outlined that
“[Safaricome’s] ambition is to empower both businesses and [their] customers easily manage and keep track of payments.”
M-Pesa users will receive a new SMS reminder informing them when a bill is due or generated. Additionally, with Safaricom’s M-Pesa Bill Manager, businesses and their customers will automatically receive receipts and invoices relevant to each specific M-Pesa transaction. Moreover, the new auto-generation system will empower institutions like schools to customize different types of payments such as transport, lunch, and tuition. Schools will be able to send reminders to parents regarding payments that are due.
This innovation comes at an opportune time for both Safaricom and its clients. On the one hand, millions of mobile users are willing to make payments via M-Pesa to avoid cash transactions as part of safety measures to control the spread of COVID-19. On the other hand, Safaricom recently disclosed that its Lipa Na M-Pesa service constituted 85.5% of non-cash payment for ordinary goods/services across the country. Last year October, mobile transactions rose to Sh4.08 trillion representing a 13.2% increase.