Mobile Payments Go Viral: M-PESA in Kenya

M-PESA is a small-value electronic payment and store of value system that is accessible from ordinary mobile phones. It has seen exceptional growth since its introduction by mobile phone operator Safaricom in Kenya in March 2007: it has already been adopted by 14 million customers (corresponding to 68 percent of Kenya’s adult population) and processes more transactions domestically than Western Union does globally. This paper examines factors contributing to M-PESA’s market success.