M-PESA: leading mobile payment provider from Kenya to beyond
In a country like Kenya which has only 44% of the population using bank services just in 2021, access to financial system can be difficult, which then leads to lower consumption rates and less movement in the market. For an online business, that means a smaller pool of potential customers unless they can get alternative payments methods integrated into their storefronts. Moreso for a turnkey online casino that operates without any way of receiving mobile payments to make things easier for players.
M-PESA has been at the forefront of mobile payments within Kenya, acting as a payment method for those, who have not yet registered under traditional banking systems. iGaming payments can be a lot more accessible by those who just want a good time betting online, such as in sports betting or other gambling services. This payment method was started in 2007 and was based in Kenya up till this day - even as the service expanded to other countries such as Egypt, Ghana, Ethiopia, and South Africa.
What M-PESA offers to users
Safaricom, the network that maintains the M-PESA system, described it as a virtual banking system that uses SIM card mobile payments and SMS messages to help people make transactions through the simple concept of mobile payments. Those who need to settle their funds face-to-face can also visit a nearby M-PESA branch store for identity verification and other services. All funds loaded into the M-PESA system are kept in digital trust accounts which can be used for other alternative payments methods or saved in the account with interest.
Pros and Cons of M-PESA
Such a simple yet well-used payment method is sure to come with its own set of advantages and disadvantages compared to the rest. M-PESA not only allows for iGaming payments to be sent solely through mobile phones, it also allows for people to pay an online business without having to sign up a credit card or go through an extraordinarily long registration process.
Here are some of the key points to using M-PESA as a payment gateway for online casino use:
- Minimizing costs per transaction;
- Speeding up transaction times;
- Increasing staff efficiency.
The key benefit to M-PESA is the time and cost it saves for an online business or turnkey online casino that has to go through whole batches of iGaming payments per day. For example, the transfer of funds from a customer to the business has service fees shouldered by the customer at a rate still lower than other Monetary Financial Institutions. It also allows for an online business to further improve customer satisfaction as iGaming payments are done near instantly and are secured via SMS notification and other measures like PIN codes per every iGaming payment.
Some cons still exist and need to be addressed, however:
- Integration of payment gateway can be difficult;
- Reports of system incompatibility with Safaricom;
- Manual Reconciliation in case of transaction errors;
- Complicated interface for financial businesses.
Studies have been done on the reach of M-PESA and how it affects other financial Institutions and online businesses and not all findings have been positive. One commonly cited issue is that the integration of payment gateway can be difficult due to customer error when inputting account numbers or system errors. Most notably, there have been reported delays between Safaricom’s systems and the account of the online business, creating cases were having to visit an M-PESA store is needed to further settle pending iGaming payments in the case of online casinos. These issues seem to also extend to customers, potentially risking the satisfaction of players using this payment method.
Integrating M-PESA to your business
With both pros and cons weighed out, the choice of implementing M-PESA as a part of payment gateway for online casino depends on the situation. If iGaming payments from the market base in Africa is your goal, then it could be of some use as there seems to be a growing gambling market within the area. Not only has M-PESA moved around 6 trillion Kenyan Shillings, but mobile payments have also made a profit of 55 billion from that figure. Locally, it has proven itself to be quite the reliable choice for alternative payments methods.
In-country, Kenya has also been seeing some movement in the gambling scenes and has been the place for other turnkey online casino websites to start making their bets. Figures on Kenya have shown that the online casino market is rising at a rate of 5.60% and is continuing towards a user base of around 434,000 users by 2029. With potential revenue per player amounting to 295 USD projected, there are a lot of signs leading many online business managers toward the country.
Whether you plan on taking charge of this lucrative business through alternative payments methods, or just want to ensure your turnkey online casino runs mobile payments efficiently, there is always help out there for you. Monoup offers any online business the expertise needed for UX/UI design of payment flow, payment routing solutions, and even risk management concerns. Contact our team of professionals and we can solve your issues with iGaming payments and even integration of payment gateway systems.
