Telecommunications Giant; Safaricom, has invested 407 million Kenyan Shillings in its mobile money transfer business; M-Pesa as part of the company’s efforts to expand the usage of the platform.
The investment was made via Instaconnect Limited, a subsidiary which Safaricom acquired in 2010 and previously provided content services.
Safaricom in its latest annual report, “The company rolled out the international money transfer business through its 100 percent owned subsidiary, Instaconnect Limited, and injected additional capital by acquiring assets worth 397 million Kenyan Shillings and a cash transfer of 10 million Kenyan Shillings.”
“We expect that due to the above investment, there will be more activity that will have a positive impact on the reported results of full year to March 2020 from the operations of the new businesses.”
The Nairobi Securities Exchange listed firm says M-Pesa Global; its international money transfer business, handled 101 billion Kenyan Shillings, which is a third of all diaspora remittances into Kenya in the year ending in March 2019.
M-Pesa’s revenue also rose 19.2 percent to 75 billion Kenyan Shillings in the year ending in March 2019.
M-Pesa allows its users to make payments, send and receive money, and participate in e-commerce internationally via partnerships with other payment platforms such as AliExpress, PayPal and Western Union.
The telecommunications company; Safaricom, says the new investment is part of its plan to expand M-Pesa’s users and transactions via the expansion of its ecosystem.
