Case Study 9: M-Pesa: A Renowned Disruptive Innovation from Kenya
This case study describes the developments and success of M-Pesa. M-Pesa is the first banking app for mobile phones to be produced in the developing world. It was designed by Safaricom Limited Company in Kenya. The product has received global attention due to its uniqueness, innovativeness, rapid adoption, and the impact it has made to a large population, mostly people who are poor (bottom of pyramid). M-Pesa has many uses, including: transfer of money from person to person, buying airtime, paying utility bills and keeping the money in the M-Pesa account for future use. The product connected a population which was hitherto disconnected from accessing financial services. M-Pesa has contributed significantly to financial profits for the company as well as to societal value in the country. As an early mover in mobile banking in Kenya, Safaricom partnered with other businesses thereby broadening its agent network before competitors came into the scene. M-Pesa is a disruptive innovation. It created a new market and value network, disrupting the existing ones and becoming a major competitor against the established market leaders and alliances in the financial services sector in Kenya.