According to the financial report for the fiscal year ending March 2022, Safaricom PLC recorded a gross profit of KSh 50 billion from its mobile money services, M-Pesa.
The increase in M-Pesa’s gross profit accounted for nearly half of the telco’s KSh 102.2 billion profit before tax, which is 49 percent.
Safaricom attributed the increase in M-Pesa profit to increased mobile money adoption, which was accelerated by the COVID-19 pandemic shift to cashless transactions.
In 2020, the company raised the M-Pesa transaction limit to KSh 150,000 and the M-Pesa wallet limit to KSh 300,000. According to the report, M-Pesa’s revenue of KSh 107.7 billion accounted for 49 percent of the company’s total revenue of KSh 298.07 billion in the same year.
“The uptake of mobile money services increased from March 2020, following initiatives to encourage cashless transactions meant to curb the spread of COVID-19.
“The growth in technology helped businesses to adopt online payments, a move that contributed to increased uptake of the mobile money services,” said the telco.
According to Business Daily, the increase in M-Pesa profit and revenue shows that the mobile money service outperformed other telco business units such as voice and data.
Safaricom improved service on the M-Pesa business, including the loan overdraft service, Fuliza and KCB M-Pesa loans.
As a result, the telco’s revenue from service fees increased. M-Pesa revenue increased to KSh 25 billion in the fiscal year ending March 2022.
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