Posted on :Monday , 7th October 2024

A strategic agreement between Safaricom and Mastercard has been launched, with the aim of providing cross-border remittance services and payment acceptance to hundreds of thousands of Kenyan merchants.  

In order to improve digital payment solutions and financial inclusion, the partnership will make use of Mastercard's worldwide payment infrastructure in addition to Safaricom's mobile money service, M-PESA.

This collaboration takes place at a time when M-PESA mobile wallet payments are expected to expand at a compound annual growth rate (CAGR) of 12.7% between 2020 and 2024.  

Together, Mastercard's worldwide presence and Safaricom's vast merchant network of about 636,000 will allow the two firms to offer safe and expandable payment options that will let businesses cater to both domestic and foreign customers.

Executive Vice President of Mastercard for Europe, the Middle East, and Africa (EEMEA), Amnah Ajmal, highlighted that the partnership's goal is to establish an equitable digital economy in Kenya.

Additionally, the alliance hopes to improve the efficiency of international money transfers for Kenyan individuals and enterprises by streamlining cross-border remittance services. In order to give merchants quicker and more dependable payment options, Mastercard's omnichannel payment solutions will be integrated into M-PESA's ecosystem.  

This partnership is consistent with Safaricom's goal of providing cutting-edge, customer-focused products that improve Kenyan enterprises' operational effectiveness.

Chief Financial Services Officer of Safaricom Esther Waititu emphasised how the alliance creates new prospects for M-PESA retailers. Through the integration of our proficiency with Mastercard's worldwide acceptance network, we facilitate the provision of more effective and seamless payment solutions to companies' clientele, both within and outside of Kenya.

In addition to enhancing merchant payments and international remittances, Safaricom and Mastercard's relationship promotes Kenya's sustained economic growth.

Because so many small and medium-sized businesses (SMEs) depend on digital platforms like as M-PESA, these companies can get access to international markets and become more efficient.

Furthermore, in a nation where mobile money has become a lifeline for the underbanked, the effort aids in the promotion of financial inclusion.

This partnership has the potential to strengthen Kenya's digital economy by bringing safe payment options to neglected areas, fostering innovation and boosting customer trust.

This agreement represents a significant advancement in the digital payment landscape of the East African nation, as Safaricom continues its journey towards obtaining an acquiring licence to facilitate card payments on behalf of businesses.  

These projects are anticipated to start rolling out in the upcoming months, further establishing Kenya as a pioneer in mobile-based financial services.