Mobile Money Services in East Africa

Mobile Money has transformed finance in East Africa, enabling millions to send, receive, save, pay bills and access credit using just their mobile phones. Key operators such as M-Pesa, Airtel Money, MTN Mobile Money (MoMo) and Tigo Pesa have each built strong presences across the region. Below is an overview of how these evolved, the transaction methods they support, and the range of services they offer.

M-Pesa

When started
M-Pesa was launched by Safaricom and Vodafone in March 2007 in Kenya.
Transaction methods
• USSD / SIM Toolkit (for feature/basic phones).
• Smartphone app (later developed; the M-PESA Super App, now also a Business Super App).
• Agent network (cash in / cash out) via physical agents spread around the country.
Services offered
1. Person-to-person transfers (within country) and increasingly cross-border remittances.
2. Payment of utility bills, merchant payments (via “Lipa na M-PESA” in Kenya) for goods and services.
3. Airtime top-up, transfers of airtime value.
4. Digital lending (overdrafts, credit facilities), saving / financial inclusion services.
5. Additional mini-apps / services: e.g. health wallet, pension contributions etc.
Presence beyond Kenya
M-Pesa operates also in Tanzania (under Vodacom), Democratic Republic of Congo, Ethiopia, etc.

Airtel Money

When started / cross-border expansion
Airtel Money is offered by Airtel Africa and has been operating in countries like Kenya, Uganda, Tanzania, Rwanda. One important milestone was in 2014, when Airtel launched its cross-border money transfer service in East Africa, pilot starting November 1, targeting Kenya, Uganda, Tanzania and Rwanda.
Transaction methods
• USSD codes (short codes like *185# in Uganda)
• Mobile app (“My Airtel App”)
• Agent network for cash in / cash out, withdrawal at select ATMs in some markets.
Services offered
1. Transfers (person-to-person) and ability to send/receive across borders within East Africa.
2. Bill payments, airtime / data top-ups.
3. Merchants payments (goods / services) and online payments via integration with POS or e-commerce in some markets.

MTN Mobile Money (MoMo)

When started / growth
MTN MoMo (Mobile Money) is a service by the MTN Group, widely used in Uganda, Rwanda, and other countries. Exact launch dates vary by country. For example Uganda’s mobile money service has been growing for years and has launched cross-border remittance corridors (e.g. with Rwanda) around 2015.
Transaction methods
• USSD short codes for basic phones.
• Smartphone app (modern MoMo apps with additional features)
• Agent network for cash-in / cash-out. In many markets this is essential.
Services offered
1. Local transfers, payments of utilities, merchant transactions.
2. Cross-border remittances (corridors between Uganda, Rwanda, Tanzania etc.)
3. Credit / lending services: e.g. MoSente in Uganda, which allows mobile money users to borrow via USSD.
4. Virtual card services, bill payments, history and usability improvements (face/fingerprint login etc in updated app).

Tigo Pesa (Tanzania)

When started / key developments
The precise start year is less clearly cited here, but Tigo Pesa is well-established in Tanzania. Some key service expansions:
• Tigo Pesa has introduced savings product “Kibubu” in partnership with Bank of Africa.
• In 2023, it integrated with government payment gateway (GePG) so customers can pay government bills via USSD, app or QR.
Transaction methods
• USSD (15001#) for many basic transactions.
• Tigo Pesa App on Android and iOS to do many same functions: send money, pay bills, send to bank, cash out etc.
• QR code payments and integration with virtual cards (via Mastercard service) to enable online/global payments.
Services offered
1. Person-to-person transfers (within and outside network), sending money to bank.
2. Bill payments (utilities, government), top up phone/data, cash out at agents.
3. Saving product (Kibubu) with interest.
4. Overdraft / credit facilitation: Tigo Nivushe in partnership with tech providers like JUMO.
5. Social-media or novel channels: WhatsApp integration to access account / transact.