In Summary

  • In a groundbreaking announcement, Safaricom's Chief Information Officer (CIO), George Njuguna, has unveiled plans to introduce standing orders to the M-PESA mobile money platform, marking a significant milestone in the world of mobile financial services.
  • The incorporation of standing orders into these services will enable customers to effortlessly transfer portions of their balances into savings or investments on a regular basis, fostering financial discipline and growth.

In a groundbreaking announcement, Safaricom's Chief Information Officer (CIO), George Njuguna, has unveiled plans to introduce standing orders to the M-PESA mobile money platform, marking a significant milestone in the world of mobile financial services.

Standing orders, a feature commonly associated with traditional banking and neo-banking products, will make M-PESA the pioneer in this innovative realm.

"This is the first initiative, where you will have standing orders on a mobile platform – the first in the world, and not just the first in Africa. We will use it in other areas such as health because we understand this economy to increase accessibility and affordability," stated Njuguna via X (Twitter).

Standing orders in M-PESA will offer users a convenient and efficient way to automate recurring payments and transfers.

With this new feature, individuals can effortlessly establish regular payments from their mobile money accounts to other individuals, businesses, or services, simplifying bill payments, rent transactions, and other recurring expenses.

M-PESA, which has evolved to encompass a wide range of products and services, spanning payments, savings, and credit access, is poised to leverage standing orders across various avenues.

One of the primary application areas is bill payments. M-PESA currently offers products such as Lipa na M-PESA and Buy Goods, making it likely that users will soon be able to set up standing orders to automatically cover utility bills, rent, and other expenditures on specific dates.

Moreover, M-PESA boasts a variety of credit facilities, including M-Shwari, KCB M-PESA, and Fuliza, an overdraft facility.

The integration of standing orders into these services will ensure timely loan repayments, offering a seamless experience to borrowers.

Traditionally, standing orders have played a crucial role in savings and investments.

The incorporation of standing orders into these services will enable customers to effortlessly transfer portions of their balances into savings or investments on a regular basis, fostering financial discipline and growth.

Safaricom's innovative spirit extends beyond traditional boundaries.

Kenyan customers can now make payments for services like Netflix through M-PESA using this virtual card.

The introduction of standing orders in this context promises to streamline online payments, eliminating the need for manual intervention with every transaction.

Although Safaricom has not provided specific timelines or implementation details for the introduction of standing orders, this announcement comes on the heels of a successful fiscal year ending in March 2023.

M-PESA reported an 8.8 per cent growth in revenue, reaching an impressive Sh117.19 billion ($816 million).

While these figures fell slightly short of the prior fiscal year's results, Safaricom attributed this decline to macroeconomic factors, reaffirming the company's commitment to innovation and financial empowerment for all.