Project Title

Vodafone: Digitizing India’s Cash to Code with MPesa

Presenters

Academic department under which the project should be listed

CCOB - Marketing & Professional Sales

Faculty Sponsor Name

Dr. Mona Sinha

Was not told to submit for approval prior to posting abstract

Abstract (300 words maximum)

Vodafone is trying to enter the mobile wallet market of India with their product, MPesa, which was originally designed and implemented successfully in Kenya, providing millions with access to mobile financial services. Currently over 90% of transactions in India are cash based, which not only hampers business but also exacerbates issues like corruption and counterfeiting. With a rising penetration rate of mobile phones and more mobile internet users, India is a very attractive place for companies to offer mobile wallets. According to industry estimates, the mobile money market is expected to reach USD $112.3 billion in 2021 from USD $21.2 billion in 2016- a compound annual growth rate (CAGR) of over more than 39.6%. Vodafone hopes to target those people who either don’t have bank accounts, or who rarely use them, with their product MPesa. With sweeping government reforms and investment on infrastructure, India is becoming more desirable for companies like Vodafone to enter the country’s mobile wallet market; however, Vodafone lost its early entrant advantage share to Paytm and other local new entrants. Vodafone has plans on expanding their recent efforts further to make MPesa the number one mobile payment system in India. To succeed, Vodafone will have to face competitive, regulatory, and culture challenges. The threat of growing competitive pressure could reduce market share and profitability as customers have a wide choice of suppliers to choose from in this highly competitive market with multiple alternative providers national and international players.

Project Type

Poster

Vodafone Digitizing India's Cash to Code with MPesa - Abstract.docx (13 kB)
Vodafone: Digitizing India’s Cash to Code with MPesa

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Vodafone: Digitizing India’s Cash to Code with MPesa

Vodafone is trying to enter the mobile wallet market of India with their product, MPesa, which was originally designed and implemented successfully in Kenya, providing millions with access to mobile financial services. Currently over 90% of transactions in India are cash based, which not only hampers business but also exacerbates issues like corruption and counterfeiting. With a rising penetration rate of mobile phones and more mobile internet users, India is a very attractive place for companies to offer mobile wallets. According to industry estimates, the mobile money market is expected to reach USD $112.3 billion in 2021 from USD $21.2 billion in 2016- a compound annual growth rate (CAGR) of over more than 39.6%. Vodafone hopes to target those people who either don’t have bank accounts, or who rarely use them, with their product MPesa. With sweeping government reforms and investment on infrastructure, India is becoming more desirable for companies like Vodafone to enter the country’s mobile wallet market; however, Vodafone lost its early entrant advantage share to Paytm and other local new entrants. Vodafone has plans on expanding their recent efforts further to make MPesa the number one mobile payment system in India. To succeed, Vodafone will have to face competitive, regulatory, and culture challenges. The threat of growing competitive pressure could reduce market share and profitability as customers have a wide choice of suppliers to choose from in this highly competitive market with multiple alternative providers national and international players.