#17
AIRTEL MONEY
Airtel Money is a digital money transfer service that was launched in 2011 by Airtel Kenya, one of the major telcos in the country.With nearly 24,000 agents spread throughout the nation and an impressive KES 1.5 billion worth of total deposits made in 2022, Airtel Money is ranked Kenya’s second largest mobile wallet.
In July 2022, Airtel Kenya made the decision to carve out its mobile money business into a separately run entity. Airtel Money is regulated by the Central Bank of Kenya (CBK), significantly setting the base for it to enhance governance over its business, optimise its operations and financial position, and offer better services to its customers. The move also serves to protect Airtel Money from issues related to its parent company’s business activities.
Airtel Money allows its consumers to: manage their Airtel account; withdraw money from automated teller machines (ATMs) and cash merchants; send and receive money from other mobile money users; top up on airtime; pay utility bills; and pay for goods and services from authorised merchants.
Additionally, the mobile wallet offers loans and savings products to its customers in the form of two products, namely, Kopa Cash and M-Fanisi. Kopa Cash is a short-term unsecured loan that allows users to borrow a minimum of KES 350 and a maximum of KES 30,000, payable within a month. On the other hand, M-Fanisi is a savings product that earns registered consumers an interest of 7 percent per annum (pa) on their savings accounts, and/or up to 11.25 percent pa on their fixed deposit accounts. M-Fanisi account owners also have access to short-term loans.
International transfers are equally available through Airtel Money. Consumers are able to affordably send funds abroad to Tanzania, Rwanda, Zambia, Malawi and Uganda.
In a similar manner, Airtel Money offers its users the ease of receiving funds directly into their mobile wallets, at absolutely no cost. Within Africa, users can receive money from Tanzania, Rwanda, Zambia, Uganda and South Africa. Furthermore, via partnerships with cross-border money transfer services such as Remitly, Western Union and Zepz (previously World Remit), Airtel Money customers experience seamless international money transfers directly into their mobile wallets, from over 200 various countries worldwide, making it easier and more convenient for them to access their funds.
The popularity of Airtel Money has steadily grown since its establishment. The mobile wallet service is characteristic of a few unique values that make it a suitable competitor within the mobile money market, as well as clearly illustrate its growth potential.
Firstly, Airtel Money offers competitive pricing compared to other mobile money services in Kenya. For example, customers enjoy zero transaction costs when sending money within the Airtel network, and transfer charges are substantially low when making remittances outside the network. This makes it more attractive to customers, especially those who are price-sensitive.
Another contributing factor is the added value extended by Airtel Money. For instance, customers get 25 percent extra airtime or data when they buy airtime or data bundles using Airtel Money. This, combined with the fact that Airtel Kenya’s voice and data products are budget-friendly, gives anyone with an Airtel line an edge over anyone with a different network. Recent data from the Communications Authority (CA) shows that Airtel Kenya has doubled its share of the voice market to 32.2 percent as of December 2022, from 13.5 percent five years ago, with its mobile data usage registering a similar trend. This is proof that mobile phone users are certainly responding.
Moreover, Airtel Money customers can make direct mobile money payments to any merchant till number and paybill, across different mobile operators and banks, without the use of a third-party service. The increased adoption and convenience of cashless payments have been bolstered by this.
Through its partnerships with various businesses including utility companies, online merchants, and government agencies, Airtel Money is in a position to continuously expand its range of services and reach even more customers.
As Airtel Money focuses on empowering both individuals and businesses by reinforcing financial inclusion in Kenya, with its strongest desirable character being heightened affordability, it holds itself true to being a customer-obsessed brand.
