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Vision and approach Transformational solutions Operating responsibly
Finance – Our approach
Partnering to develop new mobile money
solutions
Going beyond basic transactions to enable people without bank
accounts to save and borrow money is the next step in M-Pesa’s
development. In 2012/13, Vodafone launched M-Shwari, a new
service for M-Pesa customers in Kenya, offered in partnership
with Safaricom and the Commercial Bank of Africa, which now
has 1.2 million active customers. M-Shwari allows M-Pesa
customers to save as little as 1 shilling (equivalent to around a
tenth of a US cent), earn interest on their savings and take out
small loans, all using their mobile phone. Customers who have
savings accounts can access micro loans instantly based on a
credit scoring history provided by Safaricom from information
relating to their savings and airtime accounts.
International money transfers are an important source of
income for people in emerging markets as migrant workers
send money home to their families. However, wiring money
internationally can be expensive, particularly for small amounts.
In 2012/13, we partnered with money transfer company BICS,
to launch a new low-cost service enabling M-Pesa customers
to send and receive funds internationally directly via their
mobile phones. Customers where M-Pesa is available will,
subject to local regulation, be able to connect to more than
21 international money transfer businesses in 35 countries via
HomeSend, an international remittance hub. This builds on
our existing international remittance services enabling M-Pesa
customers in Kenya and Tanzania to send and receive money to
certain countries.
We are also partnering with other companies to offer micro
insurance services using M-Pesa, including health insurance in
Kenya and funeral insurance in Tanzania (see case studies).
Saving for health insurance via M-Pesa
We are partnering with insurance company Britam,
technology provider Changamka Microhealth and global
health organisation PSI to enable people in Kenya to use
M-Pesa to save towards the cost of health insurance for
their family. The insurance cover offered through this
service, known as Linda Jamii, includes both out-patient
and in-patient, dental and optical needs.
22 Vodafone Group Plc Sustainability Report 2012/13
In focus: Easing the burden of funeral costs in Tanzania
In Tanzania, funerals are important community events
for many people, but organising them can be financially
crippling for family members. We are working in partnership
with Heritage Insurance to offer a new service that
enables M-Pesa customers in Tanzania to register to make
monthly payments for funeral insurance easily via SMS
text message. If the policyholder dies, Heritage Insurance
processes the claim within 72 hours and makes a pay-out
to the named beneficiary to help cover the funeral costs.
Vodacom provided over 170,000 customers with insurance
in the first month of its launch in October 2012.