Introduction
Mobile phone payments and started in Kenya in 2007 and it evolved over the years and significantly contributed to their progressive economy. Currently, mobile phone payment in Kenya could settle various billings such as Transfer of money, payment of bills, saving of money and buying and selling. Through this medium of money transfer, it added convenience to people just like in purchasing settling bills. Mobile phone payments help the people to purchase almost any commodities conveniently. Apparently, people always like to bring their mobile phones everywhere and therefore payment through phone increased economic impact. Phone industry look for new business models in order to further improve and develop their mobile services. The trends in mobile phone payments focused on mobile internet innovations and tend to have global standard.
Significance of M-PESA
Majority of the people of Kenya uses their mobile mostly on communication. Most of the of them have been attracted to the convenience brought by M-PESA. The technology helped them to transact easily and removes hassles of having to get cash and most primarily is the time they saved. Generally, consumers preferred mobile payments on paying for services and transfer of money wherein most of them enjoy the convenience of the technology and this was the initial value point considered by the consumers. In Kenya alone, they registered successful data service through the technology wherein they applied this even in ring tone devices. The confidence of customers grew in terms of the usage patterns of the technology and the services applied for money. The research was based on e-Marketer’s data for mobile phone transfer.
Analysis and trends were related and gathered through e-business, emerging technologies, and online marketing. The aggregates of e-Marketers analyzed various data from their compilation and online marketing statistics. Mobile phone payments increased globalization since the technology promoted diversity and it could also be applied as an effective intervention particularly in rural areas of the country. However, it was not easy to generalize the advantages because of the different outcome measurements. The overall cost effectiveness through mobile phone was still limited and rare and the interventions is quite weak
Drawbacks of M-Pesa
The ongoing policy applied with the technology includes the value of communications in promoting developments. Some experts believed that mobile phone payments could only be good as merely “quick fix” in solving certain problems especially those which are covered with comprehensive policies. Some critics view mobile banking as social gradients especially in rural setting in Kenya with information barriers, lack skilled human capital, and lack funds for floats.
There are negative positions on the increasing use of M-PESA in banking and transferring of money and the open opportunities might be given to women. There are the poor with difficulty in the accessed of information in public facilities, and shared services through innovative strategies. The broad policy associated in M-PESA covers various issues in Kenya. Some people are convinced about the usefulness of mobile telephones and its interventions in delivering money. Subscriptions on mobile telephones grew continuously and the demand exists because of the waiting period involved for the traditional wire line phones
There were reports that mobile subscribers overtook wire line subscribers and this report involved geographic regions. Some of the mobile phone functions were not considered as effective interventions because of the mere presence of mobile phones that allow communication with healthcare providers and those technologies that lessen isolation of certain areas in case of emergency. People believe that mobile Banking contributed to the improvement of people lives. Mobile telephones were not only good as marketing tool but they were also effectively utilized as tools of development in rural areas. Mobile banking has eliminated financial and regulatory barriers in the transfer of money.
Success factors
The true power of M-PESA technology was realized in Kenya and it is revolutionizing the circulation of money. The markets have utilized mobile phones for banking services and the intervention of technology was considered as crucial especially for those people who lived in rural areas and only rely on money sent home by their relatives or members of their family. The dramatic growth of mobile phones outnumbered the cash machines and they paved new set of services that turn mobile phone as banking tool with the potential to increase the economy. The people have vast number of access to financial products wherein the expansion of technology was even directed to microfinance which could allow small loans and could changed lives of millions.
Although Safaricom built his firm on communication products, their business mastery contributed much to his success. This success was based on a competitive urge that concentrated the firm’s efforts on a market with huge potential but with few competitors.
They got in early and in a big way, strove to become the industry leader, made Safaricom’s products the best, most useful but the cheapest, and established for themselves a proprietary position through which they own and do. Through offers to customers and strategic alliances that they could not refuse and continual innovations and inventions, Safaricom became an undisputable leader in the market. The lesson learned in this fete is that all attempts to possess the market eventually lead to possession of its profits. Equally, to become the leader in an industry, one must set the standards of the industry through strategic IT use to create cost leadership, product differentiation or focus that is unmatched.
Mode of entry
M-PESA is considered as strategic weapons for business particularly in the improvement of their competence. There are researchers who continuously exploring on M-PESA and its opportunities in the industry. However, there are still challenges for M-PESA such as the keyboards and screens of mobile phones are tiny and awkward to use. Wireless networks are very slow in data transmission and most of the phones have minimal memory and limited power supply.
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