Product Innovation in Strengthening Competitive Advantage: Insights From M-Pesa (Zetech Journal of Business and Technology)

Summary

• The global fintech market was valued at $340.10 billion in 2024 and is projected to reach $1,126.64 billion by 2032.p.1
• Global startup funding reached $314 billion in 2024, representing a 3% increase over the previous year.p.2
• Sub-Saharan Africa remains the center of mobile money, accounting for over 1.1 billion registered accounts.p.2
• M-Pesa reached over 34 million active customers in Kenya and more than 51 million across eight African markets by December 2024.p.3
• Lipa na M-Pesa expanded its merchant payment service to 658,669 merchants by September 2024.p.3
• M-Pesa maintained market dominance in Kenya with a 91% market share in the fourth quarter of 2024.p.4

Key insights

1. The global fintech market is projected to expand at a compound annual growth rate of 16.2% between 2024 and 2032.p.1
2. Global fintech investment fell to $95.6 billion in 2024 after peaking at $210 billion in 2021.p.2
3. The global peer-to-peer payments market was valued at over $2.6 trillion in 2024.p.2
4. By the end of 2014, M-Shwari had accumulated 9.2 million savings accounts and disbursed 20.6 million loans.p.2
5. The M-Pesa Super App surpassed 3 million monthly active users by July 2023.p.3
6. M-Pesa Global processed cross-border transfers totaling KES 418 billion in the 2023 financial year.p.3
7. The Central Bank of Kenya enabled M-Pesa to connect directly with commercial bank accounts through adaptive regulatory policies.p.4
8. M-Pesa ceased operations in India due to strong competition, regulatory complexities, and lack of localization.p.4