Vodacom M-Pesa begins interest payouts to customers

RETHABILE MOHONO

MASERU – Vodacom Lesotho (VCL) Financial Services, popularly known as M-Pesa, has announced the commencement of interest payouts accumulated between February 2024 and January 2025 to eligible customers. M-Pesa, which was first launched in Lesotho in July 2013 as a product of Vodacom Lesotho, became an independent entity under the name VCL Financial Services in 2021.

Despite its independence, it remains wholly owned by Vodacom Lesotho. The company operates under the regulation of the Central Bank of Lesotho, while Vodacom Lesotho itself falls under the jurisdiction of the Lesotho Communications Authority.

The mobile money service originated in Kenya as a solution for sending money over long distances, initially relying on airtime trading as an informal method of transfer. The name “M-Pesa” is derived from Swahili, meaning “Mobile Money.” Today, it is Africa’s leading mobile money platform, widely recognized and operational in multiple countries, including Lesotho.

According to a statement from VCL Financial Services, the company has earmarked M11 978 055.11 to be distributed among 826 040 customers. This payout represents interest accumulated in its trust account over the specified period. Only customers who have actively used M-Pesa for transactions such as person-to-person money transfers, withdrawals, purchases of goods and services, airtime and bundle purchases, and bill payments are eligible for the payout. The calculation of each customer’s share is based on their transaction activity, factoring in both debits and credits over the period.

“Each individual customer is going to have their daily transactions calculated and this is going to be called their ‘Throughout’,” the company explained. “This will be calculated as their total debit and credit entries. A customer’s throughput is then calculated as a percentage of the total Trust account throughput; the resulting percentage is then multiplied by the total interest accumulated, which determines the share of a customer on the total interest allocation.”

M-Pesa’s move to distribute accumulated interest underscores its commitment to enhancing financial inclusion and providing additional benefits to its users in Lesotho. Customers are encouraged to check their transaction history and ensure they meet the eligibility criteria to receive their share of the interest payout.