M-PESA continues to decline as Airtel Money gains ground in Kenya

Think about the last time you needed to send money quickly—maybe to that one relative in the village or to split a bill with friends. Chances are, you used a mobile money service. It's become a common way to handle finances, especially in places where traditional banks aren't easily accessible, like many parts of Africa.

As a result, platforms like M-PESA, Airtel Money, SmartCash PSB, MoMo PSB, and Orange Money have become household names, with Kenya leading the way as the birthplace of mobile money innovation.

But for years, Safaricom-owned M-PESA has been the undisputed mobile money boasting a more reach than other players leader. Despite its dominance, M-PESA is beginning to lose ground to some newer players.

According to data from Kenya's Communication Authority, M-PESA is experiencing yet another significant decline in market share having declined for the fifth consecutive quarter. The service's market share fell by 2.3 percentage points to 91% in Q4 2024 compared to Q3.

Meanwhile, during the same period, Airtel Money grew from 7.6% to 8.9%. That's quite impressive, considering the fact that Airtel Money started operations in Kenya just three years ago.

You may ask, "What's the reason for M-PESA's slow downfall and Airtel Money's rise to fame?" First off, Airtel Money remains the more affordable option for transactions.

Sending KES 1,000 ($7.7) to other services costs KES 11 ($0.085) on Airtel Money. M-PESA, on the other hand, charges KES 13 ($0.093) for the same transaction.

Moreover, withdrawing the same amount costs KES 29 ($0.22) on Airtel Money, which is KES 2 less than M-PESA. Airtel Money's intense promotions and expanded agent networks are also drawing more customers.

Speaking of agent networks, Airtel Money started partnering with supermarket chains like Naivas to host deposit and withdrawal points. So, while M-PESA still maintains an edge with over 160,000 agents nationwide, Airtel's strategic partnerships are making its network more accessible.

On a broader note, M-PESA isn't the only mobile money service experiencing a significant decline in the African market. In Nigeria, MTN's MoMo PSB lost 2.5 million users in 2024, down from 5.3 million users.

Unfortunately, MTN, a major telecommunications company in Africa, continues to face setbacks. Over to the network provider space, MTN Nigeria recently lost its position as the MTN Group's highest-earning subsidiary for the first time since 2019.

Its revenue fell to $2.26 billion in 2024, down from $4 billion in 2023, largely due to the naira's depreciation against the dollar.

That being said, despite the challenges, M-PESA remains the dominant mobile payment platform in Kenya, with over 34 million customers. The platform also handles over 30 billion transactions with an estimated value of KES 40 trillion ($308.8 billion).

Airtel Money only has an estimated eight million registered users but will continue to grow its market share through strategic initiatives.