Vodacom and Safaricom have successfully acquired mobile money payment service, M-PESA, reports TechWeez. Safaricom’s late CEO, Bob Collymore believed that the $13.4 million deal would let “both purchasers make significant savings in royalties paid to Vodafone and expand the service to new African markets”.
By taking ownership of M-PESA’s brand and intellectual property, Vodacom and Safaricom will be able to drive further growth across Africa instead of paying royalty fees to Vodafone. The companies paid 5% and 2% of their annual MPESA revenue respectively.
“For Safaricom, we’re excited that the management, support and development of the M-PESA platform has now been relocated to Kenya, where the journey to transform the world of mobile payments began 13 years ago,” says Safaricom CEO, Michael Joseph.
“This new partnership with Vodacom will allow us to consolidate our platform development, synchronize more closely our product roadmaps, and improve our operational capabilities into a single, fully converged Centre of Excellence”.
According to TechWeez, “M-PESA has 40 million users in the continent where Kenya supplies the majority of users. It is operational in Kenya, Tanzania, Lesotho, DRC, Ghana, Mozambique and Egypt. Vodacom and the Government of Kenya each have an equal shareholding of Safaricom (35% each) and the rest was offered during the IPO”.