M-BIRR

About M-BIRR

M-BIRR is a mobile money service launched in Ethiopia to provide financial services to the unbanked population. The company was founded in 2009 by Irishman Jim Noctor and Frenchman Thierry Artaud, who were former colleagues at a software company in Dublin. Artaud's investment firm was impacted by the 2007 financial crisis, which led him and Noctor to establish a mobile payment company.

The service, inspired by Kenya's M-PESA, allows users to conduct financial transactions such as sending and receiving money, paying bills, and receiving salaries via their mobile phones, without needing a traditional bank account or internet access. M-BIRR operates through a USSD code (*818#), making it accessible on older phone models. For those without a phone, transactions can be completed through a network of agents or with a scratch card PIN.

M-BIRR partnered with Ethiopia's five largest microfinance institutions (MFIs) to expand its reach into rural areas without the need for new physical branches. This model allowed the company to serve as a platform for government social welfare payments, reaching over 750,000 households. The business model is based on sharing revenue from end-user transaction fees with the mobile operator. The company had raised significant funding from investors like the European Investment Bank (EIB) and DEG, a subsidiary of Germany's KfW. However, despite its initial success and large user base, the company reportedly collapsed and was up for sale as of September 2021.