IELTS Reading: Money Transfers by Mobile (Translation & Answer Key)

The “Money Transfers by Mobile” reading passage analyzes the emergence and impact of the M-Pesa service in Kenya—an SMS-based financial solution for those without access to traditional banking systems. The text focuses on the operational mechanics, socio-economic benefits, and security challenges of this mobile money model. This article from ECE Language Center provides a complete translation and a detailed breakdown of the answers to help you optimize your score in the Reading section.

Reading Passage

Money Transfers by Mobile

A. The ping of a text message has never sounded so sweet. In what is being touted as a world first, Kenya’s biggest mobile operator is allowing subscribers to send cash to other phone users by SMS. Known as M-Pesa, or mobile money, the service is expected to revolutionise banking in a country where more than 80% of people are excluded from the formal financial sector. Apart from transferring cash – a service much in demand among urban Kenyans supporting relatives in rural areas – customers of the Safaricom network will be able to keep up to 50,000 shillings (£370) in a virtual account on their handsets.

B. Developed by Vodafone, which holds a 35% share in Safaricom, M-Pesa was formally launched in Kenya two weeks ago. More than 10,000 people have signed up for the service, with around 8 million shillings transferred so far, mostly in tiny denominations. Safaricom’s executives are confident that growth will be strong in Kenya, and later across Africa. “We are effectively giving people ATM cards without them ever having to open a real bank account,” said Michael Joseph, chief executive of Safaricom, who called the money transfer concept the next big thing in mobile telephony.

C. M-Pesa’s is simple. There is no need for a new handset or SIM card. To send money, you hand over the cash to a registered agent – typically a retailer – who credits your virtual account. You then send between 100 shillings (74p) and 35,000 shillings (£259) via text message to the desired recipient – even someone on a different mobile network – who cashes it at an agent by entering a secret code and showing ID. A commission of up to 170 shillings (£1.25) is paid by the recipient but it compares favourably with fees levied by the major banks, whose services are too expensive for most of the population.

D. Mobile phone growth in Kenya, as in most of Africa, has been remarkable, even among the rural poor. In June 1999, Kenya had 15,000 mobile subscribers. Today, it has nearly 8 million out of a population of 35 million, and the two operators’ networks are as extensive as the access to banks is limited. Safaricom says it is not so much competing with financial services companies as filling a void. In time, M-Pesa will allow people to borrow and repay money, and make purchases. Companies will be able to pay salaries directly into workers’ phones – something that has already attracted the interest of larger employers, such as the tea companies, whose workers often have to be paid in cash as they do not have bank accounts. There are concerns about security, but Safaricom insists that even if someone’s phone is stolen, the PIN system prevents unauthorised withdrawals. Mr. Joseph said the only danger is sending cash to the wrong mobile number and the recipient redeeming it straight away.

E. The project is being watched closely by mobile operators around the world as a way of targeting the multibillion pound international cash transfer industry long dominated by companies such as Western Union and Moneygram. Remittances sent from nearly 200 million migrant workers to developing countries totalled £102 billion last year, according to the World Bank. The GSM Association, which represents more than 700 mobile operators worldwide, believes this could quadruple by 2012 if transfers by SMS become the norm. Vodafone has entered a partnership with Citigroup that will soon allow Kenyans in the UK to send money home via text message. The charge for sending £50 is expected to be about £3, less than a third of what some traditional services charge.

Questions

Full Translation of the Reading Passage

[Paragraph A] The ping of a text message has never sounded so sweet. In what is being touted as a world first, Kenya’s biggest mobile operator is allowing subscribers to send cash to other phone users by SMS. Known as M-Pesa, or mobile money, the service is expected to revolutionise banking in a country where more than 80% of people are excluded from the formal financial sector. Apart from transferring cash—a service much in demand among urban Kenyans supporting relatives in rural areas—customers of the Safaricom network will be able to keep up to 50,000 shillings (£370) in a virtual account on their handsets.

[Paragraph B] Developed by Vodafone, which holds a 35% share in Safaricom, M-Pesa was formally launched in Kenya two weeks ago. More than 10,000 people have signed up for the service, with around 8 million shillings transferred so far, mostly in tiny denominations. Safaricom’s executives are confident that growth will be strong in Kenya, and later across Africa. “We are effectively giving people ATM cards without them ever having to open a real bank account,” said Michael Joseph, chief executive of Safaricom, who called the money transfer concept the next big thing in mobile telephony.

[Paragraph C] M-Pesa’s operation is simple. There is no need for a new handset or SIM card. To send money, you hand over the cash to a registered agent—typically a retailer—who credits your virtual account. You then send between 100 shillings (74p) and 35,000 shillings (£259) via text message to the desired recipient—even someone on a different mobile network—who cashes it at an agent by entering a secret code and showing ID. A commission of up to 170 shillings (£1.25) is paid by the recipient, but it compares favourably with fees levied by the major banks, whose services are too expensive for most of the population.

[Paragraph D] Mobile phone growth in Kenya, as in most of Africa, has been remarkable, even among the rural poor. In June 1999, Kenya had 15,000 mobile subscribers. Today, it has nearly 8 million out of a population of 35 million, and the two operators’ networks are as extensive as the access to banks is limited. Safaricom says it is not so much competing with financial services companies as filling a void. In time, M-Pesa will allow people to borrow and repay money, and make purchases. Companies will be able to pay salaries directly into workers’ phones—something that has already attracted the interest of larger employers, such as the tea companies, whose workers often have to be paid in cash as they do not have bank accounts. There are concerns about security, but Safaricom insists that even if someone’s phone is stolen, the PIN system prevents unauthorised withdrawals. Mr. Joseph said the only danger is sending cash to the wrong mobile number and the recipient redeeming it straight away.

[Paragraph E] The project is being watched closely by mobile operators around the world as a way of targeting the multibillion-pound international cash transfer industry long dominated by companies such as Western Union and Moneygram. Remittances sent from nearly 200 million migrant workers to developing countries totalled £102 billion last year, according to the World Bank. The GSM Association, which represents more than 700 mobile operators worldwide, believes this could quadruple by 2012 if transfers by SMS become the norm. Vodafone has entered a partnership with Citigroup that will soon allow Kenyans in the UK to send money home via text message. The charge for sending £50 is expected to be about £3, less than a third of what some traditional services charge.

Academic Vocabulary Summary

• Excluded from (v): To be left out or denied access to something.

• Revolutionise (v): To change something radically or fundamentally.

• Virtual account (n): An account that exists digitally rather than physically at a bank.

• Denomination (n): The face value of a banknote or coin.

• Levied (v): To impose or collect a fee or tax.

• Filling a void (idiom): Providing something that was previously missing.

• Unauthorised (adj): Without official permission or approval.

• Remittance (n): Money sent home by someone working abroad.

• Quadruple (v): To increase by four times.

Answer Key and Detailed Explanation

1. D (A possible security problem)

Explanation: The end of paragraph D mentions security concerns and the risk of sending money to the wrong number, allowing the recipient to withdraw it immediately.

2. C (The cost of M-Pesa)

Explanation: Paragraph C specifies the commission fee of up to 170 shillings and compares it to bank fees.

3. E (An international service similar to M-Pesa)

Explanation: Paragraph E mentions Western Union and Moneygram, companies that dominate the international money transfer industry.

4. A (The fact that most Kenyans do not have a bank account)

Explanation: Paragraph A states that more than 80% of the population is excluded from the formal financial (banking) sector.

5. biggest

Explanation: Paragraph A: “…Kenya’s biggest mobile operator…”

6. an agent / a registered agent

Explanation: Paragraph C: “…hand over the cash to a registered agent – who credits your virtual account.”

7. Tea

Explanation: Paragraph D mentions “larger employers, such as the tea companies” being interested in paying salaries via phone.

8. long dominated

Explanation: Paragraph E: “…international cash transfer industry long dominated by companies such as Western Union…”

9. NOT GIVEN

Explanation: Paragraph A mentions the service is popular among urban Kenyans supporting rural relatives, but it does not state that *most* urban Kenyans have relatives in rural areas.

10. TRUE

Explanation: Paragraph B: “…around 8 million shillings transferred so far, mostly in tiny denominations.”

11. FALSE

Explanation: Paragraph C: “…even someone on a different mobile network.”

12. FALSE

Explanation: Paragraph D states that “In time,” M-Pesa will allow people to make purchases, implying this feature was not yet available at the time of writing.

13. FALSE

Explanation: Paragraph E states the GSM Association represents mobile operators, not consumers.

M-Pesa is a prime example of how technology can bridge gaps left by traditional institutions. This passage serves as a reminder of a key IELTS Reading strategy: always pay close attention to time markers (present vs. future) to avoid being misled in True/False/Not Given questions. We hope this insight into Kenya’s digital revolution helps you handle economic topics with greater flexibility and confidence.