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Safaricom’s mobile money platform, M-PESA, is poised to introduce standing orders, a move revealed by the company’s Chief Information Officer (CIO), George Njuguna. This innovation positions M-PESA as the world’s first mobile money platform to offer this feature, although standing orders are common in traditional banking and neo-banking products. Njuguna shared the news on X (formerly Twitter), stating, “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.”
The introduction of standing orders on M-PESA is expected to revolutionize recurring payments and transfers. With this feature, users can establish regular payments from their mobile money accounts to individuals, businesses, or services. It offers a convenient and hassle-free way to settle bills, rent, or other recurring expenses promptly.
Potential Applications:
1. Bill Payments:
M-PESA encompasses a wide range of products and services, including bill payments through options like Lipa na M-PESA and Buy Goods. Users are likely to have the capability to set up standing orders for automatically paying utility bills, rent, and other expenses on specified dates.
2. Loan Repayments:
M-PESA provides several credit facilities such as M-Shwari, KCB M-PESA, and Fuliza (an overdraft facility). Standing orders will play a crucial role in ensuring timely loan repayments, particularly in this area.
3. Savings and Investments:
Standing orders have traditionally been instrumental for savings and investments. Safaricom offers similar products like KCB M-PESA, M-Shwari for savings, and Mali for investments. Integrating standing orders with these services can facilitate regular transfers of a portion of a customer’s balance into savings or investments.
4. Online Payments:
Safaricom introduced a virtual card in partnership with VISA last year, designed exclusively for online payments. This channel enables Kenyan customers to make payments for services like Netflix through M-PESA. Standing orders can simplify settling these payments without manual intervention each time.
Safaricom has not disclosed the exact availability date for standing orders or implementation details. In the fiscal year ending in March 2023, M-PESA reported an 8.8% growth in revenue, totaling KES 117.19 billion ($816 million). Although these figures fell short of the previous fiscal year’s results, Safaricom attributed the decline to macroeconomic factors.
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