MPESA is simultaneously the strongest and weakest link in Safaricom’s portfolio. Most subscribers stick with Safaricom because of the omnipresent nature of MPESA. Once a formidable competitor is found in that space, the invincible nature of Safaricom is bound to start crumbling.
Indeed, Safaricom and other operators know this and they have duly responded by offering to buy out YouMobile – an operator that was allegedly planning to partner with Equity Bank in delivering the mobile money services. Equity Bank will therefore be forced to lease infrastructure from Safaricom, Airtel or Orange in their new scheme of things.