The cellphones have traditionally been used for communication, but in recent times, we have witnessed tremendous advancement of the mobile phone technology. The current cellphone technology enables people to send and receive money, and forty years ago, no one would have imagined people would be able to use cellphones to transact. The use of cellphone as a payment solution spans two decades, and some developing countries have immensely contributed to the development of the mobile payment solutions. In Sub-Saharan Africa, the mobile banking is popular in countries such as Kenya where even the most basic phone can be used to transact. Kenya in particular is revolutionizing this technology because M-Pesa, a mobile money payment technology in the country, integrates features that enable one to access various services including loans.
While the industrialized countries especially in the western world have dominated the global tech industry, there are some things people in the west can learn from Kenya and other countries where mobile payment is popular. When M-Pesa began in Kenya in 2007, there were a handful of outlets serving a population of more than 40 million people. These outlets served as mini-banks where customers could deposit and withdraw money. With time, however, the number of the outlets increased so that in every corner of the street, there was an M-Pesa outlet. The growth of these agents was supported by the rigorous investment on the telecommunication infrastructure. This is one of the reasons why mobile payment spread fast in Kenyan.
The public will and support is critical to the success of a new technology, and if a new idea receives limited support from the public, the chances of the idea materializing or becoming successful are next to null. When Safaricom introduced the mobile payment in Kenya, it already had a foothold in the country considering that it was already a popular brand. Safaricom was already part of the Kenyan society, and it was the dominant player in the country. Furthermore, it embraced a product promotional and advertisement strategy in which it made adverts containing messages of patriotism. Thus, the company became a national brand.
Considering the success of the M-Pesa in Kenya, startups and the players in the tech sector in the west can borrow a leaf from some countries in Africa. A key lesson that one can learn from Kenya is getting the right partners, and collaborating with these partners is crucial if a new startup wants to grow fast. The other lesson that western startups can draw from Kenya’s experience is company owners should keep the customer characteristics in mind when promoting their products because choosing a method that appeals to customers can drive up sales.