 "Vodafone to launch M-Pesa in Egypt, Romania this year")
Vodafone today said it is planning to launch its mobile money transfer and payment service M-Pesa in Egypt and Romania by end of this year. M-Pesa, which is a trademark of Vodafone, is already available in eight countries across the world.
In India, it started rolling out the service in December last year.
Vodafone currently offers M-Pesa service in Kolkata, Bihar, Jharkhand and Rajasthan. The country’s second largest mobile operator by subscriber base, on Wednesday, launched M-Pesa in Delhi telecom service area, in association with ICICI Bank. Vodafone has earlier announced that M-Pesa will be launched across the country over the next 12 to 18 months.
Vodafone currently offers M-Pesa service in Kolkata, Bihar, Jharkhand and Rajasthan. The country’s second largest mobile operator by subscriber base, on Wednesday, launched M-Pesa in Delhi telecom service area, in association with ICICI Bank. Vodafone has earlier announced that M-Pesa will be launched across the country over the next 12 to 18 months.
M-Pesa allows customers to transfer money to any mobile phone in India, remit funds to bank accounts, deposit and withdraw cash from designated outlets, pay utility bills, and shop at select merchant establishments.
“We expect a small number of people to adapt this initially...if classical marketing theory is anything to go by usually about half to one per cent of people adopt a new product," Vodafone India Business Head (Delhi) Subrat Padhi said.
The users need to deposit Rs 200 to register for the service and the company charges Rs 10 per transaction as convenience fee for payment of utilities. Apart from that, there are various slabs for transaction charges for transferring money.
The service will be available through 1,400 authorised agents and across 130 Vodafone exclusive retail stores in Delhi and national capital region.
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To open M-Pesa account, Vodafone customers will need to visit a designated agent outlet, fill up a form, submit identity and address proofs, and deposit a minimum amount. The mobile wallet will be activated immediately and customers can deposit cash, transfer money to any bank account, recharge mobiles, and pay utility bills.
Once the documents are verified and approved by ICICI Bank and Mobile Commerce Solutions (MCSL), a wholly-owned subsidiary of Vodafone India, customers can do other transactions such as cash withdrawal and money transfer to any mobile number.
Vodafone will initially target migrant workers who need to send money home every month. He estimates that currently there are about three million migrant workers working in metros and large cities.
Mobile banking has been gaining popularity in India. The number of mobile banking transactions doubled to 5.6 million in January 2013 from 2.8 million a year ago. The value of these transactions increased three-fold to Rs 625 crore during the month from Rs 191 crore in January 2012.
The country’s largest mobile operator by subscriber base Bharti Airtel also has a similar service called Airtel Money. The service is available pan India, but remittance is not included.