Kopo Kopo Building on the Rails of Mobile Money in Kenya

With the advancement in technology and popularity and easy access to phones, online transactions through mobile phones are getting very famous throughout the world. Even in developing countries like Kenya, people are getting used to mobile transactions. 

Mobile money has definitely made our lives easy. Now you do not need to rush to the bank to send or receive money; you can do it while sitting at your home, just with a few clicks on your phone. 

In Kenya, earlier, people had to struggle a lot due to the lack of traditional banking services, but now, with the help of online transitions, it has become easy for them to operate their businesses and make transitions. 

Initially, M-PESA was the first mobile money service in Kenya. In 2007, M-PESA was launched in Kenya, and people started depending on online transactions. By the year 2013, 48% of people were using M-PESA to make their transactions. 

Kopo Kopo did some research and found out that even though a lot of people in Kenya use M-PESA for their transactions, very few (less than 0.1%) business people have merchant accounts with M-PESA. Kopo Kopo took advantage of this gap and came up with a new mobile money service that can offer benefits to merchants as well as other people making transactions through Kopo Kopo. 

In this article, we are going to tell you about Kopo Kopo Money Mobile Kenya. We will also discuss the aims and objectives of this mobile banking service, along with how successful it has been in fulfilling its motto. So, are you ready? Without any further delay, let’s dive into it. 

What is Kopo Kopo? 

Kopo Kopo is a fintech company based in Kenya that provides a digital payment and financial management platform for small and medium-sized businesses (SMBs). The platform enables merchants to accept mobile payments from customers using various mobile money services such as M-Pesa, Airtel Money, and Tigo Pesa. 

Kopo Kopo also offers value-added services such as data analytics, customer engagement tools, and financial management tools to help SMBs better manage their business operations. The company was founded in 2012 and has since processed millions of transactions for thousands of merchants across East Africa.

What is the Main Objective of Kopo Kopo? 

The main objective of Kopo Kopo is to empower small and medium-sized businesses (SMBs) in Africa by providing them with access to affordable and convenient digital payment solutions. 

The company’s mission is to make it easy for small and medium-sized businesses to accept mobile payments from their customers, as well as to offer them additional value-added services that can help them grow their businesses. 

Kopo Kopo’s platform is designed to be user-friendly and accessible to businesses of all sizes, regardless of their level of technical expertise. By enabling small and medium-sized businesses to accept mobile payments, Kopo Kopo is helping to drive financial inclusion and promote economic growth in Africa. 

The company also aims to provide data-driven insights and tools that can help SMBs better understand and manage their business operations, leading to increased efficiency and profitability.

How Does Kopo Kopo Mobile Money Kenya Work? 

In this section, we are going to tell you how Kopo Kopo mobile money Kenya works. Here’s the step-by-step process to use Kopo Kopo Kenya: 

1. Sign Up

To use Kopo Kopo, first of all, the merchants need to sign up for Kopo Kopo’s services by creating an account online or through the Kopo Kopo mobile app.

2. Choose a Payment Solution

Kopo Kopo offers several payment solutions, including QR code payments, mobile money payments, and card payments. Merchants can choose the payment solution that best suits their needs and preferences.

3. Receive Payments

When a customer makes a payment using Kopo Kopo mobile money Kenya platform, the payment is processed and settled into the merchant’s account according to a predetermined settlement schedule.

4. Manage Finances

Kopo Kopo provides merchants with real-time reporting and analytics tools that help them to better understand their business operations and track their financial performance. Merchants can use these tools to manage their finances more efficiently and make informed business decisions.

5. Access Value-Added Services

In addition to its core payment processing services, Kopo Kopo offers a range of value-added services to its merchants, such as data analytics, customer engagement tools, and financial management tools. These services help small and medium-sized businesses to better understand and manage their business operations, leading to increased efficiency and profitability.

What Challenges Did Kopo Kopo Face in Kenya?

Kopo Kopo has faced several challenges in Kenya, some of which are common to the fintech industry in emerging markets, especially in developing countries in Kenya. Here is a list of some of the challenges and problems that Kopo Kopo faced or is still facing while starting its business and providing its services in Kenya. 

1. Lack of Infrastructure

One of the main challenges faced by Kopo Kopo Mobile Money Kenya is the lack of reliable infrastructure, such as stable internet connectivity and reliable power supply. This makes it difficult for Kopo Kopo and other fintech companies to offer their services consistently and to scale their operations.

2. Regulatory Hurdles

Kopo Kopo Mobile Money Kenya and other fintech companies in Kenya are subject to a complex and rapidly evolving regulatory environment. This creates uncertainty and additional costs for companies, as they must comply with regulations that are often unclear or subject to change.

3. Limited Adoption of Digital Payments

While mobile money services such as M-Pesa have gained widespread adoption in Kenya, many small businesses still prefer to accept cash payments. This limits the potential customer base for fintech companies like Kopo Kopo. Although to deal with this problem, Kopo Kopo keeps doing awareness programs and campaigns to spread awareness about their company and the services they offer. 

4. Competition from Established Players

Kopo Kopo faced competition from established players in the Kenyan fintech market, such as Safaricom’s M-Pesa and Equity Bank’s EazzyPay. These companies have significant brand recognition and customer loyalty, making it challenging for newer entrants to gain market share.

5. Limited Access to Capital

Access to capital is a challenge for fintech startups like Kopo Kopo Mobile Money Kenya, as investors may be hesitant to invest in companies that are perceived as risky or unproven. This can make it difficult to scale their operations and reach profitability.

However, to deal with the challenges currently being faced, Kopo Kopo mobile money Kenya can take references from building bridges between fintech and financial institutions by Finconecta and bundling mhealth info and microinsurance to improve health outcomes in Kenya. 

Was M-Pesa a Hurdle in the Success of Kopo Kopo?

M-Pesa, which is the leading mobile money service provider in Kenya, is both a challenge and an opportunity for Kopo Kopo. But with correct strategies and partnership, Kopo Kopo has been able to turn it in its favor. 

On the one hand, M-Pesa’s dominance in the Kenyan mobile money market has it difficult for new entrants like Kopo Kopo to gain market share. M-Pesa has a large and loyal customer base, and many businesses prefer to use M-Pesa for their payment processing needs due to its widespread adoption and familiarity.

On the other hand, Kopo Kopo has been able to leverage M-Pesa’s popularity and integrate its platform with M-Pesa’s mobile money service. This has allowed Kopo Kopo to offer its payment processing services to M-Pesa customers and has helped to increase the adoption of digital payments in Kenya. Kopo Kopo’s partnerships with other mobile money providers, such as Airtel Money and Tigo Pesa, have also helped to expand its customer base beyond M-Pesa users.

All in all, while M-Pesa’s dominance in the Kenyan mobile money market presented challenges for Kopo Kopo mobile money Kenya, the company has been able to successfully navigate this landscape and integrate with M-Pesa to offer its services to a wider range of customers. So even though initially, M-PESA was a hurdle, Kopo Kopo took this as an opportunity and converted it in its favor by making a partnership with M-PESA.

Has Kopo Kopo Been Successful in its Mission in Kenya?

Kopo Kopo mobile money Kenya has made significant progress towards achieving its mission of empowering small and medium-sized businesses in Kenya through the provision of affordable and convenient digital payment solutions. Here is how this fintech company has been successful in its mission and is constantly working towards it.

1. Growth in Merchant Adoption

Kopo Kopo has onboarded thousands of merchants onto its platform since its launch in 2012 and has processed millions of transactions for these merchants. This has helped to drive financial inclusion and promote economic growth in Kenya. Kopo Kopo also helped merchants during the Ebola virus, along with the role of microfinance institutions in post-ebola recovery. 

2. Partnerships with Mobile Money Providers

Kopo Kopo mobile money Kenya has formed partnerships with leading mobile money providers in Kenya, such as M-Pesa, Airtel Money, and Tigo Pesa. These partnerships have enabled Kopo Kopo to offer its services to a wider range of customers and have helped to increase the adoption of digital payments in Kenya.

3. Value-Added Services

In addition to its core payment processing services, Kopo Kopo mobile money Kenya also offers a range of value-added services to its merchants, such as data analytics, customer engagement tools, and financial management tools. 

Along with this, Kopo Kopo also provides cash advances services to selected merchants that meet the qualification requirements, so that whenever the merchant in Kenya needs immediate money for any purpose like medical needs, they do now have to go through the implications of how low-income households pay for healthcare in Mexico.

These services help small and medium-sized businesses to better understand and manage their business operations, leading to increased efficiency and profitability. Along with this Kopo Kopo can take an example from AI to improve customer engagement for BBVA Bancomer and Bancolombia and use artificial intelligence to improve their services. 

4. Recognition and Awards

Kopo Kopo mobile money Kenya has received recognition for its work in the fintech industry in Kenya, including being named one of the top 50 fintech companies in Africa by the Africa Fintech Summit in 2019.

Frequently Asked Questions (FAQs)

Q1. What is Kopo Kopo merchant settlement?

Kopo Kopo merchant settlement is a process by which Kopo Kopo settles funds received from customers on behalf of merchants. When a customer makes a payment to a merchant through Kopo Kopo, the funds are processed and settled into the merchant’s account as per the predetermined settlement schedule opted by the particular merchant.

This settlement process is designed to be efficient and secure, with funds settled directly into the merchant’s bank account or mobile money wallet. The settlement schedule can be customized to meet the specific needs of each merchant, with options for daily, weekly, or monthly settlements.

Q2. How does Kopo Kopo work?

To use Kopo Kopo mobile money Kenya, merchants can sign up for Kopo Kopo’s services online or through the Kopo Kopo mobile app and choose the payment solution that best suits their needs and preferences. When a customer makes a payment using Kopo Kopo’s platform, the payment is processed and settled into the merchant’s account according to a predetermined settlement schedule.

Q3. How do I transfer money from Kopo Kopo to M-Pesa?

If you have received money through Kopo Kopo and would like to transfer it to your M-Pesa account, you can do so using the following steps:

• Dial *234# on your mobile phone and select “M-Pesa” from the menu options.
• Choose “Lipa na M-Pesa” from the M-Pesa menu.
• Select “Pay Bill” from the Lipa na M-Pesa menu.
• Enter Kopo Kopo’s Paybill number.
• For the account number, enter the phone number that you used to register with Kopo Kopo.
• Enter the amount of money that you would like to transfer.
• Enter your M-Pesa PIN to confirm the transaction.
• You will receive a confirmation message from M-Pesa and Kopo Kopo once the transaction is complete.

However, this is very important to know that there may be fees associated with transferring money from Kopo Kopo to M-Pesa, so be sure to check the fee schedule before making a transfer. Additionally, be sure to confirm that you have sufficient funds in your Kopo Kopo account before initiating a transfer.

Conclusion 

Kopo Kopo’s platform is designed to be user-friendly, affordable, and convenient, enabling small and medium-sized businesses in Kenya to accept digital payments and manage their finances more effectively.

It has also formed partnerships with leading mobile money providers in Kenya, such as M-Pesa, Airtel Money, and Tigo Pesa, allowing it to offer its services to a wider range of customers and increase the adoption of digital payments in Kenya.

Lastly, Kopo Kopo mobile money Kenya still faces challenges in Kenya’s rapidly evolving fintech landscape, the company has been successful in its mission to empower small and medium-sized businesses through the provision of digital payment solutions and value-added services.