Nedbank and Vodacom launch M-PESA service
There’s a lot of buzz on Twitter at the moment about the new M-PESA service, launched a few hours ago by Nedbank and Vodacom.
Other than how one pronounces “M-PESA”, and why that name was chosen, it sounds like a really interesting and potentially useful service.
If I’m understanding it correctly, the concept works as follows…
- Anyone with a Vodacom cellphone can load money onto their phone at Nedbank branches (and other retail outlets). This effectively means that every Vodacom phone has suddenly become a (very basic) Nedbank “account”.
- Once you have some money loaded into your phone, you can then use it to pay anyone else who has a phone, by simply sending them an SMS! The beauty is that the recipient does not have to be a Vodacom client, and does not have to have an account with Nedbank. All that they need is a cellphone number. Period.
- The recipient can then exchange their “payment” for actual cash at any Nedbank ATM (or several retail outlets).
Sounds brilliant!

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