Vodafone set to cut M-Pesa fees for Safaricom

Money Transfer

Vodafone Group Plc is set to lower the fees it charges Safaricom for M-Pesa money transfer service this year, a move set to lift the mobile telecoms operator’s earnings outlook.

The lower fee will be the product of moving the M-Pesa IT platform from Germany to Kenya. Hosting the M-Pesa platform locally is expected to cut payments made to third parties and increase the efficiency of the money transfer service.

“The software for the platform for Kenya is under development and will be available for testing during the second half of this year.

“The hardware for the platform will be installed in the Safaricom data centres during 2014,” said Michael Joseph, a director of Safaricom and Vodafone’s Mobile Money, in an e-mail response to the Business Daily.