Vodacom, SA’s largest cellular company, is set to try again with its mobile money service, M-Pesa, after the offering failed to gain traction in the local market.
The mobile currency has been popular in other markets, such as Tanzania, where Vodacom first kicked off with it, and currently accounts for 6% of the group’s overall revenue. However, in SA, it only has a few hundred thousand users and has been held back by legislation and the integration needed to move money from a bank account to an electronic wallet.
Chief executive officer Shameel Joosub expects M-Pesa to account for about 15% of Vodacom’s revenue as a group in the next three years, while airtime purchased via the offering is set to move from 20% in Tanzania to between 20% and 35%.
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