Safaricom strikes M-Pesa deal with Vodafone
Safaricom has entered into a deal with Vodafone to reduce the licence fees of the M-Pesa money transfer platform.
According to the companies, one of Vodafone’s subsidiaries owns the intellectual property rights for M-Pesa and earns between 10-11% of revenues from the service, in a deal dated 2007, which capped the fee at 25%.
Safaricom CEO Bob Collymore said the negotiated deal would be presented to its board for consideration before the details are made public. Vodafone is Safaricom’s largest shareholder.
“We have finished the negotiations of a revised fee and will be presenting it to our board. I am not at liberty to talk about the deal offered to Safaricom, and now it is up to the board to accept or reject it,” said Collymore.
Safaricom is reportedly expecting a reduction as M-Pesa servers have been relocated to Kenya and as a result, are effectively under its management.