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M-money channel distribution case : Tanzania - Vodacom Tanzania M-PESA (English)

In April 2008, Vodacom Tanzania went live with the second East African implementation of Vodafone Group’s revolutionary mobile money transfer platform, m-pesa. Over the last several months, Vodacom has made a number of strategic changes that have resulted in increased subscriber registrations and has enabled a more rapid roll out of the agent network in Tanzania. The changes include a simpler pricing model, a more targeted education-based marketing campaign, and the introduction of an aggregator model to better manage and support its distribution network. Vodacom uses a trust structure that is similar to the operation in Kenya to protect deposits in the service. A holding company has been registered in Tanzania, with independent directors, to act as a trustee of all funds from the m-pesa business. It now services 5.9 million of the country’s 14 million mobile phone subscribers. It is still the leading mobile operator in Tanzania but faces strong competition from 3 other providers, Zain, Tigo, and Zantel. This paper discusses the original strategic tactics that Vodacom Tanzania employed during the launch of m-pesa in April 2008 and describes how those tactics have evolved since to improve delivery and penetration of the system in Tanzania.

Details

  • Document Date

    2017/01/01

  • Document Type

    Working Paper

  • Report Number

    117460

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Tanzania,

  • Region

    Africa,

  • Disclosure Date

    2017/07/27

  • Disclosure Status

    Disclosed

  • Doc Name

    M-money channel distribution case : Tanzania - Vodacom Tanzania M-PESA

  • Keywords

    tax burden on business;anti money laundering policy;send money home;mobile money;mobile phone subscriber;money transfer service;formal financial service;literacy level;formal financial sector;access to finance;demand for service;informal economic activity;mobile payment system;technology adoption;formal banking system;in depth market;water bill payment;law and regulation;consumer education campaign;volume of transaction;market strategy;case of failure;risk of theft;distribution network;cash withdrawal;marketing campaign;license fee;regulatory environment;rural area;company information;transaction value;cash float;microfinance loan;dispersed population;call center;revenue model;Grocery Store;registration process;flat fee;voter registration;mobile subscribers;national remittance;retail outlet;business case;liquidity management;remittance corridor;phone number;pricing scheme;payment product;bank reconciliation;large transaction;audit trail;population dispersion;shop owner;quality service;Payments for Services;staff resource;response time;registered company;telecom operator;coverage area;bus company;small fee;mobile penetration;fee structure;transaction fee;deposit fee;registration form;transaction volume;transfer fee;mitigating risk;local subsidiary;care center;Population Density;withdrawal fee;mobile banking;market survey;educational campaign;independent director;charitable donation;regulatory requirement;mobile network;remittance flow;rural retailer;urban migrant;local population;subsidiary company;target market;atm machine;banking service;market characteristic;strategic change;pricing model;external market;petrol stations;civil liability;cultural practice;terrorist financing;market factor;distribution channel;severely limits;holding company;management process;management problems;market condition;research base;valid id;registration procedure;selection criterion;upper class;Banking Regulation;rural population;

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Citation

M-money channel distribution case : Tanzania - Vodacom Tanzania M-PESA (English). IFC mobile money toolkit Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/821171501151486410/M-money-channel-distribution-case-Tanzania-Vodacom-Tanzania-M-PESA