Vodacom SA pulls plug on M-Pesa

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.

SOURCE;BUSINESSDAY