The introduction of Whatsapp Pay by Facebook has already ruffled the Kenya’s Telco giant Safaricom whose product M-Pesa has been enjoying massive monopoly in mobile money transfer and has continuously posted profits amounting to billions of shillings. M-Pesa despite grown to be the main revenue source for the company eclipsing internet, text and voice calls charges.
The trials for Whatsapp pay, the latest feature by the social-media giant Facebook targeting the extremely popular mobile money transactions that amounts to billions of dollars in a day. The market the Facebook products namely; Instagram, Whatsapp, Facebook App, Messenger enjoys makes gives them a comparative advantage in the market.
Facebook is keen to disrupt ecommerce world since he just announced the other day the rolling out of Facebook Shops to enable businesses to conduct their operations, sales in the social media with ease and Whatsapp Pay to facilitate the payments and transactions which will obviously easy and convenient.
However, Facebook may have to battle with raft of issues before hitting the ground in many countries. From the government regulatory rules to the protections of local markets, here are some ways why M-Pesa may still be the force to reckon after all;
• Regulatory hurdle
Whatsapp Pay obviously has to be regulated by authorities in the countries they will operate. India for example have has delayed the approval in a wait-and-see strategy. Due to different fiscal policies it is poised to raise serious concerns in various markets. M-Pesa’s monopoly will still stand of government fails to approve the service.
• Data privacy and Facebook baggage
Facebook has been on spotlight on the concerns on the data security and possible breach but hackers and internet scammers. With this concerns in mind, people may have to rethink twice before using the service.
• M-Pesa’s interoperability.
M-Pesa’s interoperability features that makes it possible enable transactions to and from the bank may give it an edge and a challenge to Whatsapp Pay. Business to customer and customer to business interoperability features has M-Pesa deeply popular and it will be hard to outclass them.
• Market Penetration.
M-Pesa is a brand already popular and with millions of daily customer and transactions amounting to millions. People are already used to M-Pesa way of mobile money and Whatsapp Pay may be a little bit late.