Mpesa affected the existing banking institutions which have lost

Mpesa is a mobileapplication that was developed in Kenya and it offers banking services usingthe mobile phone. It operates in more than 40000 outlets. Mpesa innovation isdisruptive in Kenyan context, as it has created new markets. This has affectedthe existing banking institutions which havelost clients who had been using the banking services.

Mpesa application wasintroduced to Kenya just as a simple method of sending money among theindividual citizens. As time progressed, many individuals (Kikulwe, Fischer,& Qaim, 2014) diverted from using the banks in sending of funds from oneplace to another as the innovation was considered as the best. Money could getits destination instantly. The technology has been accepted easily because thetechnology uses simple technology. Individuals nowadays applause theinnovations from Safaricom that hasenabled quick sending of money as they expected.The Mpesa application has features that are easy tocomprehend.

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  Individuals are given anopportunity to create their own personal identification digits that protect themoney in a Mpesa account. This hascreated confidence and trust in many Kenyan subscribers.On the same development, other banking services have been affiliated to Mpesa such as mobile banking from phone to the bank and vice versa. Further, Mpesa has created avenues in which individuals use in creating accounts in which theysave money that gains interests.  On thesame development, selling and buying of government bonds have made easierthrough the innovations of MpesaServices.  Mpesa innovation hasdriven growth in the in the banking industry. On the same development, Mpesa services have been preferred because theyare fast and cheap. Economic development has been stimulated because of theinnovation (Ndirangu, & Nyamongo, 2014) of Mpesaby Safaricom Company.

It through mpesainnovations that have made new business such online gambling, for example, sports get milestone to many individuals. It isbelieved that as per today there are over30 million subscribers of Mpesa.There is high stimulationof business growth in Kenya nowadays.

It is believed that the growth of theeconomy has been greatly been influenced by the innovations of Mpesa services. The country’s economy isgrowing at almost double digit. It upon this ground that the Mpesa technology has been able to disrupt theexisting business. Many businesses have failed since the introduction of the Mpesa innovations in Kenya.New markets have beencreated because of the innovations of Mpesa services in Kenya. New markets suchas buy goods and Lipa Na Mpesa services (Gajjala, & Tetteh, 2014) fromdifferent companies have been initiated. Companies like Kenya power have optedthe use of Mpesa services when individual customers make a monthly payment of bills.The innovationof the Mpesa services has made the market value ofproducts and services increase.

It is upon this ground that individuals havehad to feel the value of the money(Mwinzi, 2014). Mpesa innovation has displaced manybusinesses that existed there before. Tobegin with, for example, the banking institutions that had depended on sending ofmoney in from one place to another. Many businesseshave made great loses because of theinnovations of the Mpesa services.Kenyahas not fully developed as such as isdeveloping the country. The innovationhas stimulated development in many parts of Kenya.

Individuals can do business quicklyleading to increased revenues. The level of Kenya in terms of development islow but individuals in Kenya haveimpressed the technology well. Despite Kenya beinga third world country, theinnovation of mpesa has worked much far better just like in the case ofdeveloped countries.

There are a diversity Kenyan cultures. In Kenya, there are many cultures which livetogether in harmony. Despite Kenya having a divergentculture, the Mpesa innovations have been well accepted by the Kenyan citizens.The diversity culture in Kenya is accommodativeto this technology of Mpesa. It has been argued that the Kenyan culture hasbeen incorporated into the Mpesa innovation.

In simple terms, the Mpesa technology has been incorporated into the Kenyanculture Mpesa innovation hascontributed a lot in many sectors. To begin with, it has created employment toomany Kenyans who work in the Mpesa outlets countrywide.It is purported (Gómez-Barroso, & Marbán-Flores, 2014) that the Mpesainnovations have employed over 600000individuals both directly and indirectly. Further Mpesa innovations have helpedin reducing costs that individuals used to incur when sending money from oneplace to another.ConclusionThe introduction of Mpesainnovation in Kenya has disrupted many businesses in Kenya such the banks andother related institution that provide money transfer services. The technologyhas too created employment forindividuals in Kenya.

Further, a lot ofcontributions have been made in the Kenyan economy because of the innovationsthat have been brought by the Mpesa services. Kenyan culture has embraced thetechnology well despite being a third world country. Finally, Mpesa technology has helped the Kenyan government tomonitor money laundering that might be experienced by individuals who have illmotives.