M-PESA MATURES: The Price of Success
This case explores the situation of M-PESA within the Kenyan mobile money market, illustrating the rapid growth and maturation of mobile money within the domestic market and the impact of rapid international diffusion. M-PESA has enjoyed a decade long period of success within the Kenyan market. It has become by far the dominant local player in the mobile money industry, and occupies what some in the market term a virtual monopoly position. This success may have prompted some lethargy on the part of the company as it has basked in its obvious success. Because of its market dominance, there are increasing comments about a monopolistic position. A recent financial consultant’s report even suggested spinning off M-PESA from the parent company Safaricom. The issue has received a great deal of press attention, both local and international. With arguments for and against divestiture, the subject was becoming increasingly sensitive.
|Kenya, Africa, financial service, mobile money, divestiture, monopoly, Safaricom|
|RSM Case Development Centre|
Based on published sources; 13 pages.
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|Organisation||Erasmus Research Institute of Management|
Carney, W. (2019). M-PESA MATURES: The Price of Success. RSM Case Development Centre. Retrieved from http://hdl.handle.net/1765/123878