Safaricom and Mastercard have signed a partnership to accelerate the adoption of payment acceptance and cross-border remittance services in Kenya. This collaboration is set to benefit over 636,000 merchants using M-PESA, Safaricom’s leading mobile money service.
Kenya’s payment acceptance market continues to grow, with mobile wallet payments driven by M-PESA showing a 12.7 percent CAGR between 2020 and 2024. Leveraging M-PESA’s extensive merchant network and Mastercard’s global payment infrastructure, this partnership will make more seamless, secure, and scalable payment solutions available to merchants, thus enabling them to serve customers across global markets. The partnership will also boost remittance services, streamlining cross-border transactions efficiently.
“We are proud to partner with Safaricom to build an inclusive digital economy that works for everyone, everywhere. We will enable the merchants to grow and contribute to the Kenyan economy,” said Amnah Ajmal, executive vice president, EEMEA, Mastercard.
Scaling digital payments
By embedding Mastercard’s omnichannel acceptance solutions across M-PESA’s merchant space, the partnership is scaling digital payments across Kenya. Furthermore, by integrating Mastercard’s infrastructure, Safaricom will enhance cross-border money transfers, providing faster, more reliable transfers, while advancing its ability to support merchants in accepting digital payments.
“This collaboration with Mastercard unlocks new opportunities for M-PESA merchants, aligning with our mission to deliver innovative, customer-centric products. By combining our expertise with Mastercard’s global acceptance network, we are enabling businesses to provide more efficient and frictionless payment solutions to their customers, both in Kenya and beyond,” said Esther Waititu, chief financial services officer, Safaricom Plc.
Boosting financial inclusion
Safaricom and Mastercard are committed to foster innovation and financial inclusion within Kenya’s evolving digital landscape. The first initiatives are expected to roll out in the coming months, thus advancing Safaricom’s journey toward securing its acquiring license and providing merchants with cutting-edge digital payment solutions.
Safaricom is a leading telecommunication company in East Africa with over 41 million customers. Moreover, its total economic value was estimated at $3.2 billion for the 12 months through March 2021.
It is listed on the Nairobi Securities Exchange and has annual revenues of close to $2.9 billion as on March 2021. Its M-PESA mobile money transfer system empowers over 28 million customers to transact, save or borrow money through their mobile phones.
For more news on banking and finance, click here.
