The news:
- Safaricom and Mastercard have announced a strategic partnership to expand payment acceptance and cross-border remittance services to hundreds of thousands of merchants in Kenya.
- The collaboration will leverage Safaricom's mobile money service, M-PESA, alongside Mastercard's global payment infrastructure to enhance digital payment solutions and financial inclusion.
- This partnership comes at a time when mobile wallet payments through M-PESA are experiencing a compound annual growth rate (CAGR) of 12.7% from 2020 to 2024.
By combining Safaricom's extensive merchant network (approximately 636,000) with Mastercard's global reach, the two companies plan to introduce secure and scalable payment solutions, enabling merchants to serve local and international markets.
Amnah Ajmal, Mastercard's Executive Vice President for Europe, the Middle East and Africa (EEMEA), emphasised the partnership's focus on building an inclusive digital economy in Kenya.
The partnership also aims to streamline cross-border remittance services, making international money transfers more efficient for Kenyan businesses and individuals. Integrating Mastercard’s omnichannel payment solutions into M-PESA’s ecosystem plans to provide merchants with faster and more reliable payment options.
This collaboration aligns with Safaricom’s mission of delivering innovative and customer-centric products that enhance the efficiency of Kenyan businesses.
Esther Waititu, Safaricom’s Chief Financial Services Officer, highlighted how the partnership unlocks new opportunities for M-PESA merchants. “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."
Safaricom’s partnership with Mastercard is not only about improving merchant payments and cross-border remittances; it also supports Kenya’s long-term economic growth.
With many small and medium enterprises (SMEs) relying on digital platforms like M-PESA, these businesses stand to benefit from increased efficiency and global market access.
Moreover, the initiative helps promote financial inclusion in a country where mobile money has become a lifeline for underbanked populations.
By extending secure payment solutions to previously underserved regions, this collaboration could further uplift Kenya’s digital economy, encouraging innovation and enhancing consumer confidence.
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As Safaricom continues its journey toward securing its acquiring licence to enable it to process card payments on behalf of merchants, this partnership signifies a step forward in the East African nation’s digital payment landscape.
The rollout of these initiatives is expected to begin in the coming months, further solidifying Kenya’s position as a leader in mobile-based financial services.
