Big-up for M-pesa

MASERU – VODACOM Lesotho last Thursday held a thanks-giving ceremony for its clients who are using the M-pesa Bulk Payment Services. The M-pesa Bulk Payment Service is a mobile money service which allows clients to pay multiple people simultaneously into their M-pesa accounts.
It allows business entities, government ministries, international non-governmental organizations (IGOs), community based organizations and micro-finance institutions to disburse funds such as salaries wages, social grants, loans, once off payments, rewards for loyalty purchases as well as prize monies.

Thato Mochone, said the M-pesa service has been running in Lesotho for the last five years. Mochone said the technological innovation has been a hit with their clients. “M-pesa has moved from a technological name and has become a verb. For instance, one would say M-pesa M400 for school fees,” Mochone said. The first bulk payment by an external client was first executed in December 2014, since then close to 100 business partners have used the service.

Vodacom Lesotho said it continues to assist various organisations to pay out funds without any security threat. The service offers convenience even to those situated in the remotest part of the country. It said the M-pesa bulk payment service saves institutions from the burden of dealing with travel logistics and costly processes of disbursing funds, coupled with the security threat of being robbed. Corina Mosala, the Specialist in M-pesa Partnerships, said the service has brought convenience to villagers.

Mosala said Vodacom Lesotho collects over M60 million through the service. “Over and above, it has advanced financial inclusion for marginalised communities, bringing thousands of previously financially excluded Basotho into the formal financial system,” Mosala said.

Meanwhile, Esther Thulo of KR Holdings, said through M-pesa she is able to pay employees while in her office and does not have to travel long distances to do so.

]M-pesa has received backing from government institutions such as the Ministry of Finance and the Central Bank of Lesotho, which are also working to address the challenge of financial inclusion.

Tokase Mphutlane