Vodafone Group Private Limited Corporation, a British multinational mobile network operator, and the ICICI Bank, a commercial bank in India, have announced that they have expanded Vodafone’s mobile pesa (M-Pesa) cash transfer service to India. The service allows users to send and receive funds using mobile phones. Funds can be deposited to and withdrawn from M-Pesa accounts at 8,300 authorized outlets in the states of Bihar, Jharkhand and West Bengal. Vodacom currently offers the M-Pesa service via affiliates in Afghanistan, the Democratic Republic of the Congo, India, Mozambique, South Africa and Tanzania.
In India, the number of mobile banking transactions doubled from 5.6 million in January 2013 from 2.8 million in January 2012. During the same time period, the total value of mobile banking transactions increased from INR 1.9 billion (USD 33 million) to INR 6.3 billion (USD 110 million).
As of 2012, Vodafone reported revenue of GBP 44.4 billion (USD 69 billion), operating profit of GBP 12 billion (USD 18.7 billion) and a customer base of 403 million people in approximately 80 countries. As of March 31, 2012, ICICI Bank reports total assets of INR 4.9 trillion (USD 93 billion) and profit after tax of INR 64.65 billion (USD 1.27 million).
By Makai McClintock, Research Associate
About ICICI Bank Limited
ICICI Bank Limited, a banking and financial services company, operates 2,773 branches and 9,363 automated teller machines (ATMs) in India and has a presence in 18 other countries in Europe, Asia, the Middle East and North America as of 2012. ICICI Bank offers personal banking, business banking, agricultural banking, investment banking, life and non-life insurance, venture capital and asset management services. As of March 31, 2012, ICICI Bank reports total assets of INR 4.9 trillion (USD 93 billion) and profit after tax of INR 64.65 billion (USD 1.27 million). ICICI Bank’s equity shares are listed in India on the Bombay Stock Exchange and the National Stock Exchange of India Limited, and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).
About M-Pesa
M-Pesa is a mobile money service that was launched in Kenya in 2007 and has since been replicated elsewhere in Africa and Asia. The “M” stands for “mobile,” and “pesa” means “cash” in Swahili. Launched in Kenya by Safaricom Limited, a Kenya-based cellphone service provider, M-Pesa was developed by Vodafone Group Private Limited Corporation, a British multinational mobile network operator. As of September 2012, M-Pesa serves approximately 17.2 million clients through 45,540 agent outlets in Kenya. South-Africa based Vodacom, a child company of Vodafone, operates the M-Pesa service in India and Mozambique.
Sources and Additional Resources
Business Standard Article, “Vodafone, ICICI Bank Enable Mobile Wallet to Tap Rural East India,” http://www.business-standard.com/article/companies/vodafone-icici-bank-enable-mobile-wallet-to-tap-rural-east-india-113041700387_1.html
Vodacom Financial Report, “Integrated Report for the Year Ended 31 March 2012”, http://www.vodacom.co.za/cs/groups/public/documents/document/pocm01-584680.pdf
MicroCapital, January 27, 2013, “MICROCAPITAL BRIEF: Rejecting Kenya’s M-Pesa Model, Central Bank of Nigeria Bars Telecommunications Companies from Becoming Licensed Mobile Money Operators,” https://www.microcapital.org/microcapital-brief-rejecting-kenyas-m-pesa-model-central-bank-of-nigeria-bars-telecommunications-companies-from-becoming-licensed-mobile-money-operators/
MicroCapital, October 30, 2012, “MICROCAPITAL PAPER-WRAP UP: The Jipange KuSave Experiment in Kenya,” https://www.microcapital.org/microfinance-paper-wrap-up-the-jipange-kusave-experiment-in-kenya-by-sarah-rotman-david-ferrand-stephen-rasmussen-published-by-cgap/
MicroCapital, February 7, 2012, “MICROCAPITAL BRIEF: MFTransparency Releases Microfinance Pricing Data for Mozambique” https://www.microcapital.org/microcapital-brief-mftransparency-releases-microfinance-pricing-data-for-mozambique/
MicroCapital, November 1, 2011, “MICROCAPITAL BRIEF: Standard Bank: Majority of Africans Lack Access to Microfinance, Other Financial Services”
https://www.microcapital.org/microcapital-brief-standard-bank-majority-of-africans-lack-access-to-microfinance-other-financial-services/
MicroCapital, August 14, 2011, “MICROCAPITAL BRIEF: MFTransparency, Mozambican Association of Microfinance Operators (AMOMIF) Launch Transparent Pricing Initiative in Mozambique”
https://www.microcapital.org/microcapital-brief-mftransparency-mozambican-association-of-microfinance-operators-amomif-launch-transparent-pricing-initiative-in-mozambique/
MicroCapital Universe Profile: ICICI Bank Limited
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ICICI+Bank
MicroCapital Universe Profile: M-Pesa
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=M-Pesa
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
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