Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Netflix, Warner Bros talks raise fresh headaches for MultiChoice

      Netflix, Warner Bros deal raises fresh headaches for MultiChoice

      5 December 2025
      Netflix to buy Warner Bros Discovery in industry-defining megadeal

      Netflix to buy Warner Bros Discovery in industry-defining megadeal

      5 December 2025
      Vula Medical named as South Africa's 2025 app of the year

      Vula Medical named as South Africa’s 2025 app of the year

      5 December 2025
      Big Microsoft 365 price increases coming next year

      Big Microsoft price increases coming next year

      5 December 2025
      Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

      Vodacom to take control of Safaricom in R36-billion deal

      4 December 2025
    • World
      Amazon and Google launch multi-cloud service for faster connectivity

      Amazon and Google launch multi-cloud service for faster connectivity

      1 December 2025
      Google makes final court plea to stop US breakup

      Google makes final court plea to stop US breakup

      21 November 2025
      Bezos unveils monster rocket: New Glenn 9x4 set to dwarf Saturn V

      Bezos unveils monster rocket: New Glenn 9×4 set to dwarf Saturn V

      21 November 2025
      Tech shares turbocharged by Nvidia's stellar earnings

      Tech shares turbocharged by stellar Nvidia earnings

      20 November 2025
      Config file blamed for Cloudflare meltdown that disrupted the web

      Config file blamed for Cloudflare meltdown that disrupted the web

      19 November 2025
    • In-depth
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
      Why smart glasses keep failing - no, it's not the tech - Mark Zuckerberg

      Why smart glasses keep failing – it’s not the tech

      19 October 2025
      BYD to blanket South Africa with megawatt-scale EV charging network - Stella Li

      BYD to blanket South Africa with megawatt-scale EV charging network

      16 October 2025
    • TCS
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
      TCS | Why Altron is building an AI factory - Bongani Andy Mabaso

      TCS | Why Altron is building an AI factory in Johannesburg

      28 October 2025
    • Opinion
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
      How South Africa's broken Rica system fuels murder and mayhem - Farhad Khan

      How South Africa’s broken Rica system fuels murder and mayhem

      10 November 2025
      South Africa's AI data centre boom risks overloading a fragile grid - Paul Colmer

      South Africa’s AI data centre boom risks overloading a fragile grid

      30 October 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Vodacom’s M-Pesa relaunch is a flop

    Vodacom’s M-Pesa relaunch is a flop

    By Duncan McLeod18 May 2015
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    m-pesa-visa-640

    A second attempt by Vodacom to launch the M-Pesa mobile payments platform in South Africa has flopped.

    On Monday, the mobile operator conceded that since it relaunched M-Pesa in the local market last July, it has signed up only 72 000 active customers. It had been hoping for 10m sign-ups in the first five years.

    “We’re not really pushing it,” said CEO Shameel Joosub in an interview after the group’s 2015 financial results presentation. “We had a couple of challenges on the platform, which we are busy fixing.”

    But Joosub won’t say exactly what’s gone wrong. All he will say when pushed for details on the “challenges” M-Pesa is facing is this: “It’s been different things. We’re fixing all of them. Everything must be 100% perfect.”

    He now describes last year’s relaunch as “more of a soft launch”.

    He said he remains convinced that there is still scope for M-Pesa to take off in a meaningful way in South Africa, as it has in markets such as Kenya and Tanzania.

    M-Pesa was first launched in Kenya in 2007 by Vodacom sister company Safaricom and is now used by tens of millions of people in markets across Africa for mobile banking and money transfer services.

    More than 70% of the adult population in Kenya uses the service. In Tanzania, well over half of Vodacom’s clients use it.

    Vodacom first introduced M-Pesa to South Africa in 2010 and, although initial take-up was strong, it failed to take off as it has in other markets.

    Last July’s relaunch was meant to spur renewed interest and demand for M-Pesa in the South African market and address the problems it faced after it was first launched in 2010.

    Shameel Joosub
    Shameel Joosub

    At the time, Joosub trumpeted the fact that Vodacom had assembled a new M-Pesa team, brought in external expertise in banking and mobile payments, and also studied the factors that held back the service in this market and made it a success elsewhere. The company promised to focus on four main areas: distribution, registration, functionality and loyalty.

    As part of the relaunch of the service in South Africa, Vodacom ended its relationship with Nedbank, with which it launched M-Pesa locally, choosing to work instead with Bidvest Bank and Visa.

    The relaunched service offered customers a chip-and-Pin Visa card and a voucher system to upload cash as well as giving customers access to 27 000 ATMs and 240 000 merchants.

    Despite rewards offering consumers double airtime when purchasing airtime via M-Pesa and free airtime to activating the Visa card, it’s now clear — for reasons Joosub is clearly not keen to elaborate on — that the relaunch has failed to live up expectations.

    Last year, Vodacom said it hoped to sign up 10m South African subscribers to M-Pesa within five years. That target now looks hopelessly out of reach.  — © 2015 NewsCentral Media



    M-Pesa Safaricom Shameel Joosub Visa Vodacom
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleWe raised prices to drop them: Vodacom
    Next Article Nashua businesses lift Reunert

    Related Posts

    Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

    Vodacom to take control of Safaricom in R36-billion deal

    4 December 2025
    Building trust in a digital world: Vodacom Business's approach to security

    Building trust in a digital world – the Vodacom Business approach to security

    4 December 2025
    Four years later, Vodacom and Maziv have sealed their deal

    Four years later, Vodacom and Maziv have sealed their deal

    26 November 2025
    Company News
    Beat the summer heat with Samsung's WindFree air conditioners

    Beat the summer heat with Samsung’s WindFree air conditioners

    5 December 2025
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Telcos are sitting on a data gold mine - but few know what do with it - Phillip du Plessis

    Telcos are sitting on a data gold mine – but few know what do with it

    4 December 2025
    Opinion
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025
    Zero Carbon Charge founder Joubert Roux

    The energy revolution South Africa can’t afford to miss

    20 November 2025
    It's time for a new approach to government IT spend in South Africa - Richard Firth

    It’s time for a new approach to government IT spend in South Africa

    19 November 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Netflix, Warner Bros talks raise fresh headaches for MultiChoice

    Netflix, Warner Bros deal raises fresh headaches for MultiChoice

    5 December 2025
    Netflix to buy Warner Bros Discovery in industry-defining megadeal

    Netflix to buy Warner Bros Discovery in industry-defining megadeal

    5 December 2025
    Vula Medical named as South Africa's 2025 app of the year

    Vula Medical named as South Africa’s 2025 app of the year

    5 December 2025
    Big Microsoft 365 price increases coming next year

    Big Microsoft price increases coming next year

    5 December 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}