This paper provides a unique perspective of the development of M-Pesa. It discusses the need as a regulator to balance innovation and systemic risk while promoting competition. Competition was of itself a difficult concept when regulating an innovation being launched by a monopoly into a market for financial services containing dominant institutions. It tells pressures faced from the banking sector and policy makers and how these challenges were addressed. The paper also focuses on learnings and outcomes from the Kenyan experience. These lessons include the need to develop or enhance ‘information capital’ systems, the impact on payment systems and social payments, and the impact on financial innovation of M-Pesa. Lessons for regulators are provided on how to promote innovation through innovation offices, sandboxes, and reg-tech.