Airtel Money is gaining traction in Kenya’s mobile money market as M-PESA experiences a decline in market share. Reports indicate M-PESA’s share fell to 91%, while Airtel Money grew from 7.6% to 8.9%. The shift is attributed to Airtel Money’s lower transaction costs and strategic partnerships that enhance accessibility.
A significant shift in Kenya’s mobile money landscape is underway as Airtel Money gains popularity while M-PESA, the long-standing frontrunner, faces a decline. As mobile money platforms like M-PESA and Airtel Money have become essential for quick monetary transactions in areas with limited banking access, M-PESA’s market dominance is being challenged. Recent statistics from Kenya’s Communication Authority indicate that M-PESA’s market share has decreased for five consecutive quarters, now resting at 91% as of Q4 2024, marking a drop of 2.3 percentage points from the previous quarter.
Airtel Money, in contrast, has made impressive strides, increasing its market share from 7.6% to 8.9% during the same timeframe, despite launching just three years ago. This growth can be attributed to Airtel Money’s cost-effective transaction fees, which appeal to users looking for affordability in their financial dealings. For instance, sending KES 1,000 through Airtel Money incurs a fee of KES 11, compared to KES 13 on M-PESA, along with lower withdrawal costs. Furthermore, Airtel Money’s aggressive promotional strategies and collaboration with local supermarket chains for agent services have broadened its accessibility.
The challenges facing M-PESA are mirrored in the wider African market, with other mobile money services like MTN’s MoMo PSB in Nigeria experiencing user losses. MTN Nigeria also recently reported a significant drop in revenue, primarily linked to currency depreciation issues. Nonetheless, M-PESA currently boasts over 34 million customers and facilitates over 30 billion transactions, maintaining its position as Kenya’s top mobile payment platform. Meanwhile, Airtel Money, despite having approximately eight million registered users, is poised for further growth through its continuous strategic initiatives.
In summary, the mobile money sector in Kenya is witnessing a notable transition as Airtel Money emerges as a formidable competitor to the once-dominant M-PESA. With competitive pricing, enhanced accessibility through strategic partnerships, and a focus on outreach, Airtel Money is poised to steadily increase its market share. Despite these challenges, M-PESA continues to retain a significant user base and transaction volume, affirming its status as a key player in the mobile financial landscape. The evolving dynamics in this sector indicate a promising future for mobile money services in Kenya.
Original Source: www.techloy.com
