Safaricom 2023 Sustainable Business Report

45 OUR BUSINESS OUR STAKEHOLDERS KPI SUMMARY PATHWAY TO A PURPOSE-LED TECHNOLOGY COMPANY OUR MATERIAL TOPICS M-PESA: INNOVATING TO ENHANCE FINANCIAL INCLUSION When we launched M-PESA, in 2007, it was a life-changing innovation. Since that time, we have continued to expand access to financial inclusion further through the development of innovative products and services. In FY23, these included: • Collaboration with the Government of Kenya on the Hustler fund developed for both savings and credit. The fund offers instant loans to Kenyan citizens upon request, aiming to provide cheaper access to credit, and to combat embedded credit-scoring issues that have often prevented poorer Kenyans from accessing cash. At year end, there were 16.11 million subscribers with KSh 24.44 billion disbursed. • The myCounty app which helps to digitise government operations and attracted 7 000 users within the first 30 days. First rolled out in Makueni County, it will be rolled out countrywide. • M-PESA Go aims to give parents more control over their children use of mobile money wallet. By year end, we had onboarded 2 910 000 child accounts. • The merchant overdraft product provides SME merchants with credit facilities The product went live on 17 Feb 2023, with KSh 1.12 billion disbursed to 18 922 merchants by year-end. Existing products and services continued to gain traction. In a significant move, we revised the price of the Fuliza M-PESA service which allows M-PESA customers to complete their M-PESA transactions when they have insufficient funds in their M-PESA accounts downwards by 50% to make credit more affordable. This led to an increase in transaction volumes, values and subscribers. We also opened lines of credit by enabling customers to use Fuliza to buy airtime via M-PESA. Since the implementation of the service on 24 November 2022, an additional KSh 19.86 billion in additional Fuliza turnover was unlocked (based on KSh 415.15 million in incremental revenue and a 74.4% reduction in the subscribers experiencing a withdrawal transaction failure due to insufficient funds). In FY21 we launched a new M-PESA super app to cater for subscribers’ digital lifestyles and empower businesses through the mini apps programme (where 69 mini apps have already been loaded). We had targeted to publish 100 mini apps on the M-PESA app by year end. However, this proved difficult as the time to value turn around, together with the process to design, co-create and integrate, is a steep learning curve for most partners. In line with our aim of powering consumers digital lifestyles, we had targeted 10 million app downloads, but achieved 7.73 million. This is due to limited smartphone penetration as only 13.2 million of our 43 million customers have 4G-enabled smart phones. New mini apps include: • BuuPass, a Book a Bus app which generated KSh 84 260 000 in revenue. Using and completing transactions without bundles or even when offline. • M-Gas and ProGas mini apps which facilitate the purchase of affordable prepaid gas generated KSh 104 000 in revenue. • M-POST, a partnership with the Postal Corporation of Kenya for digital postal services. BILL MANAGER SERVICE Aim: Facilitates the regular sending of invoices and tracking of payments, is used by organisations like Kenya Power, schools, and water utilities. FY23 Outputs: Onboarded 30 billers and transacted KSh 5.2 billion in value against targets of 50 billers and KSh 8.36 billion, respectively. M-PESA GLOBALPAY VIRTUAL CARD Aim: Enables payments to international online merchants for goods and services using the virtual card details. FY23 Outputs: 51 990 active cards, with transactions valued at KSh 148 800. B2B API USE CASES § Aim: Facilitates business. FY23 Outputs: Achieved an additional KSh 37 million in revenue. § Business-to-business (B2B) application programming interface (API) BUSINESS TRANSACTING TILL Aim: This extension of the existing Lipa na M-PESA Buy Goods Till enables small business owners to collect payments on their till and use this money to make other payments wages/salaries, commissions etc. directly from their till. FY23 Outputs: Through this initiative, the number of merchants grew from 859 560 to 1 209 719. OTHER EXISTING PRODUCTS INCLUDE: