M-Pesa Will Account for as Much as 49% of Safaricom's Non-Voice Service Revenue in 2008, says Pyramid Research

Business Wire, May 22, 2008

CAMBRIDGE, Mass. -- Pyramid Research forecasts that revenue from M-Pesa will account for as much as 49% of Safaricom's non-voice service revenue in 2008. The mobile money transfer service will generate revenue of about $52.4m and will have a profound effect on Kenya's mobile and financial markets in the longer term.

"Kenya is East Africa's most developed mobile market with a mobile penetration rate of 30%, forecast to reach 67.5% in 2012," says Eduardo Ponce, an analyst at Pyramid Research and author of the Pyramid Research Perspective on mobile phone money transfers in Kenya.

Kenya is leading not just the region, but also the world: the enormous popularity of the money transfer services introduced during 2007 by the country's two mobile operators has demonstrated the great potential revenue to be gained from integrating mobile and financial services.

Market leader Safaricom led the way in March 2007 with its launch of M-Pesa, a mobile payment system that lets users deposit, transfer and withdraw funds from their mobile accounts. One year later, more than 14% of Safaricom's subscribers have signed up for M-Pesa, providing the operator with an attractive new revenue stream.

To contact Mr. Ponce for more information about this research, please email him at eponce@pyr.com.

About Pyramid Research

For over 20 years, Pyramid Research has helped companies in the converging communications, media and technology industries stay ahead of market trends, understand competitive threats and capitalize on opportunities. We advise most of the world's leading vendors, service providers, equipment manufacturers and financial institutions on how to build offensive strategies and drive profitability. Pyramid Research is a global company with offices in Cambridge (Massachusetts), Miami, Washington DC, London and Hong Kong.